Dunwell Industries, operating at full capacity, sold 98,000 units at a price of $110 per unit during the current year. Its income statement for the current year is as follows: Sales $10,780,000 Cost of goods sold $5,880,000 Gross profit $4,900,000 Selling expenses $2,100,000 Total expenses Administrative expenses $2,400,000 Income from operations $400,000 The division of costs between fixed and variable is as follows: $10,380,000 Expense Type Variable Fixed Cost of goods sold 65% 35% Selling expenses 70% 30% Administrative expenses 40% 60% Compute the break-even sales (units) for the current year.
Dunwell Industries, operating at full capacity, sold 98,000 units at a price of $110 per unit during the current year. Its income statement for the current year is as follows: Sales $10,780,000 Cost of goods sold $5,880,000 Gross profit $4,900,000 Selling expenses $2,100,000 Total expenses Administrative expenses $2,400,000 Income from operations $400,000 The division of costs between fixed and variable is as follows: $10,380,000 Expense Type Variable Fixed Cost of goods sold 65% 35% Selling expenses 70% 30% Administrative expenses 40% 60% Compute the break-even sales (units) for the current year.
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...
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Compute the break even sales for the current year

Transcribed Image Text:Dunwell Industries, operating at full capacity, sold 98,000 units at a price of
$110 per unit during the current year. Its income statement for the current
year is as follows:
Sales
$10,780,000
Cost of goods sold
$5,880,000
Gross profit
$4,900,000
Selling expenses
$2,100,000
Total expenses
Administrative expenses $2,400,000
Income from operations $400,000
The division of costs between fixed and variable is as follows:
$10,380,000
Expense Type
Variable Fixed
Cost of goods sold
65%
35%
Selling expenses
70%
30%
Administrative expenses 40%
60%
Compute the break-even sales (units) for the current year.
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