Question
Viejol Corporation has collected the following information after its first year of sales. Sales were $1,250,000 on 125,000 units, selling expenses $240,000 (40% variable and
Viejol Corporation has collected the following information after its first year of sales. Sales were $1,250,000 on 125,000 units, selling expenses $240,000 (40% variable and 60% fixed), direct materials $512,000, direct labor $20,900, administrative expenses $276,000 (20% variable and 80% fixed), and manufacturing overhead $362,000 (70% variable and 30% fixed). Top management has asked you to do a CVP analysis so that it can make plans for the coming year. It has projected that unit sales will increase by 10% next year.
Compute the break-even point in units and sales dollars for the current year. (Round intermediate calculations to 2 decimal places e.g. 2.25 and final answers to 0 decimal places, e.g. 1,225.)
Break-even point in units _____ units
Break-even point in dollars $_____
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