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Sales (10,000units) $ 70,000 Less variable costs (35,000) Contribution margin $ 35,000 Less fixed costs (32,500)...

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Accounting

Sales (10,000units) $ 70,000 Less variable costs (35,000)Contribution margin $ 35,000 Less fixed costs (32,500) Net income $2,500 Requirements: 1. Compute Break-even point in units andexplain what the number that you calculated means. 2. Computebreak-even point in sales volume (in dollar) and explain what thenumber that you calculated means. 3. How much sales should be inorder to earn a before tax profit of $15000.

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All working forms part of the answer Working Total Per unit Sales 70000 700 Variable Cost 35000 350 Contribution margin 35000 350 Fixed Cost 32500 Net Income 2500 Requirement    See Answer
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