EXERCISE 6: CALCULATING THE PV RATIO AND THE BREAK-EVEN POINT With the information outlined below, calculate the following: 1. Profit 2. Break-even point in revenue 3. Cash break-even point Depreciation $ 30,000 Plant direct wages 100,000 Plant supervision 60,000 Advertising 30,000 Plant insurance 20,000 Sales commissions 100,000 Office supplies 3,000 Revenue 550,000 Overtime 30,000 Rent 35,000 Property taxes 10,000 Raw materials 100,000

EXERCISE 6: CALCULATING THE PV RATIO AND THE BREAK-EVEN POINT With the information outlined below, calculate the following: 1. Profit 2. Break-even point in revenue 3. Cash break-even point Depreciation $ 30,000 Plant direct wages 100,000 Plant supervision 60,000 Advertising 30,000 Plant insurance 20,000 Sales commissions 100,000 Office supplies 3,000 Revenue 550,000 Overtime 30,000 Rent 35,000 Property taxes 10,000 Raw materials 100,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following equations is correct for determining the required sales in units to generate a targeted amount of pre-tax income (πB) under the equation method (where Q = sales in units, F = total fixed costs, πB = pre-tax profit, v = variable cost per unit, and p = selling price per unit)?
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