Need detail explanationQ. Find the breakeven point and provide the income statement at break even.** attached image Sales....Cost of goods soldFixed Budget ReportFor Year Ended December 31, 2019Direct materials ....Direct labor.....Machinery repairs (variable cost)Depreciation-Plant equipment (straight-line)..Utilities ($45,000 is variable) ....Plant management salariesGross profit......Selling expensesPackaging.....Shipping ...Sales salary (fixed annual amount)..General and administrative expensesAdvertising expenseSalaries......Entertainment expenseIncome from operations$975,000225,00060,000300,000195,000200,00075,000105,000250,000125,000241,00090,000$3,000,0001,955,0001,045,000430,000456,000$ 159,000

Breakeven point (sales dollars)=Total Fixed ExpensesContribution Margin Ratio

Answered: Need detail explanation Q. Find the…

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Need detail explanation Q. Find the breakeven point and provide the income statement at break even. ** attached image

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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Question

Need detail explanation

Q. Find the breakeven point and provide the income statement at break even.

** attached image

Sales....
Cost of goods sold
Fixed Budget Report
For Year Ended December 31, 2019
Direct materials ....
Direct labor.....
Machinery repairs (variable cost)
Depreciation-Plant equipment (straight-line)..
Utilities ($45,000 is variable) ....
Plant management salaries
Gross profit......
Selling expenses
Packaging.....
Shipping ...
Sales salary (fixed annual amount)..
General and administrative expenses
Advertising expense
Salaries......
Entertainment expense
Income from operations
$975,000
225,000
60,000
300,000
195,000
200,000
75,000
105,000
250,000
125,000
241,000
90,000
$3,000,000
1,955,000
1,045,000
430,000
456,000
$ 159,000

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