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Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. a. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.) Break-even units point b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) Break-even 2$ point

Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. a. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.) Break-even units point b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) Break-even 2$ point

FINANCIAL ACCOUNTING
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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**Problem Statement:** Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. **Questions:** a. What is the break-even point in units? (Do not round intermediate calculations. Round up your answer to the next whole number.) - Break-even point: [_____] units b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) - Break-even point: $ [_____]
Transcribed Image Text:**Problem Statement:** Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. **Questions:** a. What is the break-even point in units? (Do not round intermediate calculations. Round up your answer to the next whole number.) - Break-even point: [_____] units b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) - Break-even point: $ [_____]
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