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