Break-Even Analysis Feet-First Industries plans to sell 7,750 sleds at $60 each in the coming year. Variable cost is 60 percent of the sales price. Fixed factory overhead equals $44,540 and fixed selling and administrative expense equals $34,780. a. Calculate the units that Feet-First must sell in order to break even. 0 b. Calculate the sales revenue that Feet-First must earn to break even by using the contribution margin. $ 0 c. Confirm your answer in requirement b, by muliplying the number of break-even units in requirement a by the unit sales price. $ 0

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Break-Even Analysis
Feet-First Industries plans to sell 7,750 sleds at $60 each in the coming year. Variable cost is 60 percent of the sales price. Fixed factory overhead equals $44,540 and fixed selling and administrative
expense equals $34,780.
a. Calculate the units that Feet-First must sell in order to break even.
0
b. Calculate the sales revenue that Feet-First must earn to break even by using the contribution margin.
$ 0
c. Confirm your answer in requirement b, by muliplying the number of break-even units in requirement a by the unit sales price.
$ 0
Transcribed Image Text:Break-Even Analysis Feet-First Industries plans to sell 7,750 sleds at $60 each in the coming year. Variable cost is 60 percent of the sales price. Fixed factory overhead equals $44,540 and fixed selling and administrative expense equals $34,780. a. Calculate the units that Feet-First must sell in order to break even. 0 b. Calculate the sales revenue that Feet-First must earn to break even by using the contribution margin. $ 0 c. Confirm your answer in requirement b, by muliplying the number of break-even units in requirement a by the unit sales price. $ 0
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