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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 21
Break-Even in Sales Revenue, Changes in Variables
Carmichael Corporation is in the process of preparing next year's budget. The pro forma income statement for the current year is as follows:
Required:
1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year?
2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a $60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
Carmichael Corporation is in the process of preparing next year's budget. The pro forma income statement for the current year is as follows:
Required:
1. What is the break-even sales revenue (rounded to the nearest dollar) for Carmichael Corporation for the current year?
2. For the coming year, the management of Carmichael Corporation anticipates an 8 percent increase in variable costs and a $60,000 increase in fixed expenses. What is the break-even point in dollars for next year? (CMA adapted)
Explanation
Verified
Verified
1.Compute Break- even sales:
...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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