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Zeffer Corporation is a producer of ice cream that it wholesales to grocery stores by the carton. Zeffer is preparing next year's budget. The pro
Zeffer Corporation is a producer of ice cream that it wholesales to grocery stores by the carton. Zeffer is preparing next year's budget. The pro forma income statement for the current year is presented below.
Sales$1,100,000Cost of sales:
Direct materials$100,000
Direct labor50,000
Variable overhead140,000
Fixed overhead100,000(390,000
Gross profit$710,000
selling and G&A Variable$150,000 Fixed150,000(300,000)
Operating income$410,000
What is Zeffer's budgeted breakeven point for the upcoming year?
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