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For the Coming Year, River Company Estimates Fixed Costs at $109,000

Question 99

Essay

For the coming year, River Company estimates fixed costs at $109,000, the unit variable cost at $21, and the unit selling price at $85. Determine
(a) the break-even point in units of sales,
(b) the unit sales required to realize operating income of $150,000 and
(c) the probable operating income if sales total $500,000.?Round units to the nearest whole number and percentage to one decimal place.

Correct Answer:

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(a)$109,000/ ($85 - $21) = 1,703 units
(...

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