Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is: sales revenue of $19,440,000. Fixed costs of $10,368,000. Total variable costs of $6,480,000. The total costs is $16,848,000. A net income of $2,592,000. At what percentage of capacity would Beta Inc. break even. What would be Beta's net income if it operates at 70% of capacity.

Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is: sales revenue of $19,440,000. Fixed costs of $10,368,000. Total variable costs of $6,480,000. The total costs is $16,848,000. A net income of $2,592,000. At what percentage of capacity would Beta Inc. break even. What would be Beta's net income if it operates at 70% of capacity.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter16: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 40P

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