Carla Vista Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs. Selling price per pair of shoes Expected revenues, 2022 (51,800 units) Income tax rate $177 $9,168,600 $39 40% 18. 20 $2,645,000 540,000 700,000 $3,885,000 $77

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate the break-even point in units for 2022.
Break-even point
units
Transcribed Image Text:Calculate the break-even point in units for 2022. Break-even point units
Carla Vista Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has
prepared the following information for the current year, 2022:
Variable costs (per pair of shoes)
Direct materials
Direct manufacturing labour
Variable overhead (manufacturing, marketing, distribution, customer
service, and administration)
Total variable costs
Fixed costs
Manufacturing
Marketing, distribution, and customer service
Administrative
Total fixed costs
Selling price per pair of shoes
Expected revenues, 2022 (51,800 units)
Income tax rate
$39
18
$177
$9,168,600
20
$2,645,000
40%
$77
540,000
700,000
$3,885,000
Transcribed Image Text:Carla Vista Footwear Co. produces high-quality shoes. To prepare for next year's marketing campaign, the company's controller has prepared the following information for the current year, 2022: Variable costs (per pair of shoes) Direct materials Direct manufacturing labour Variable overhead (manufacturing, marketing, distribution, customer service, and administration) Total variable costs Fixed costs Manufacturing Marketing, distribution, and customer service Administrative Total fixed costs Selling price per pair of shoes Expected revenues, 2022 (51,800 units) Income tax rate $39 18 $177 $9,168,600 20 $2,645,000 40% $77 540,000 700,000 $3,885,000
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