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Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,800,000 410,000 Selling expenses-variable Selling expenses-fixed 400,000 Administrative expenses-variable 420,000 Administrative expenses-fixed 150,000 $93,000 65,000 27,000 55,000

Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,800,000 410,000 Selling expenses-variable Selling expenses-fixed 400,000 Administrative expenses-variable 420,000 Administrative expenses-fixed 150,000 $93,000 65,000 27,000 55,000

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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Given the above informatjkn
compute the break even point in units and compute the break even point in
dollars

Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,800,000 410,000 400,000 420,000 150,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $93,000 65,000 27,000 55,000
Transcribed Image Text:Pharoah Company bottles and distributes B-Lite, a diet soft drink. The beverage is sold for 60 cents per 16-ounce bottle to retailers, who charge customers 75 cents per bottle. For the year 2020, management estimates the following revenues and costs. Sales Direct materials Direct labor Manufacturing overhead-variable Manufacturing overhead-fixed $1,800,000 410,000 400,000 420,000 150,000 Selling expenses-variable Selling expenses-fixed Administrative expenses-variable Administrative expenses-fixed $93,000 65,000 27,000 55,000
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