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Break - Even Point in Units Chillmax Company plans to sell 3, 500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, varlable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even pairs of shoes. 2. Check your answer by preparing a contribution margin income statement based on the break- even units. Enter all amounts as a positive number:

Break - Even Point in Units Chillmax Company plans to sell 3, 500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, varlable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even pairs of shoes. 2. Check your answer by preparing a contribution margin income statement based on the break- even units. Enter all amounts as a positive number:

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Break - Even Point in Units Chillmax Company plans to sell 3, 500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, varlable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even pairs of shoes. 2. Check your answer by preparing a contribution margin income statement based on the break- even units. Enter all amounts as a positive number:
Transcribed Image Text:Break - Even Point in Units Chillmax Company plans to sell 3, 500 pairs of shoes at $60 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, varlable factory overhead, and variable selling expense). Total fixed cost equals $78,000 (includes fixed factory overhead and fixed selling and administrative expense). Required: 1. Calculate the break-even pairs of shoes. 2. Check your answer by preparing a contribution margin income statement based on the break- even units. Enter all amounts as a positive number:
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