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Measure maps Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that...

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Accounting

Measure maps

Moses Moonrocks Inc. has developed a balanced scorecard with a measure map that suggests that the number of erroneous shipments has a direct effect on operating profit. The company estimates that every shipment error leads to a reduction of revenue by $8,100 and increased costs of about $5,400.

Line Item Description Amount
Sales $233,000
Cost of goods sold 156,000
Depreciation expense 11,000
Other expenses 12,000

If the company has the above budgeted sales and costs for next month (without accounting for any possible shipping errors), determine how many shipping errors the company can afford to have and still break even. Break-even shipping errors fill in the blank 1 of 1

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