The DesMaris Company had the following income statement for the month of November 2018:DesMaris CompanyIncome StatementFor the Month of November 2018Sales ($60 × 10,000) $600,000Cost of goods sold: Direct materials ($12 × 10,000)$120,000 Direct labor ($9 × 10,000)90,000 Variable factory overhead ($7.50 × 10,000)75,000 Fixed factory overhead120,000405,000Gross profit $195,000Selling and administrative expenses: Variable ($1.50 × 10,000)$15,000 Fixed90,000105,000Operating income $90,000DesMaris Company's break-even sales volume isa.10,000 units.b.11,211 units.c.7,000 units.d.20,000 units.

Breakeven sales volume is that level of sales at which business is only recovering its fixed costs…

Answered: DesMaris Company had the following…

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Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The DesMaris Company had the following income statement for the month of November 2018:

DesMaris Company Income Statement For the Month of November 2018
Sales ($60 × 10,000)		$600,000
Cost of goods sold:
Direct materials ($12 × 10,000)	$120,000
Direct labor ($9 × 10,000)	90,000
Variable factory overhead ($7.50 × 10,000)	75,000
Fixed factory overhead	120,000	405,000
Gross profit		$195,000
Selling and administrative expenses:
Variable ($1.50 × 10,000)	$15,000
Fixed	90,000	105,000
Operating income		$90,000