Rayburn Manufacturing, operating at full capacity, sold 85,000 units at a price of $95 per unit during the current year. The income statement for the current year is as follows: Sales Item Amount $8,075,000 Cost of Goods Sold (COGS) $4,250,000 Gross Profit Selling Expenses $3,825,000 $1,870,000 Administrative Expenses $1,530,000 Total Expenses $3,400,000 Income from Operations $425,000 The division of costs between fixed and variable is as follows: Cost Item Variable Fixed Cost of Goods Sold 80% 20% Selling Expenses 60% 40% Administrative Expenses 40% 60% Management is considering a capacity expansion that will permit an increase of $950,000 in yearly sales. The expansion will increase fixed costs by $95,000, but will not affect the relationship between sales and variable costs.Compute the break-even sales (in units) for the current year.

Rayburn Manufacturing, operating at full capacity, sold 85,000 units at a price of $95 per unit during the current year. The income statement for the current year is as follows: Sales Item Amount $8,075,000 Cost of Goods Sold (COGS) $4,250,000 Gross Profit Selling Expenses $3,825,000 $1,870,000 Administrative Expenses $1,530,000 Total Expenses $3,400,000 Income from Operations $425,000 The division of costs between fixed and variable is as follows: Cost Item Variable Fixed Cost of Goods Sold 80% 20% Selling Expenses 60% 40% Administrative Expenses 40% 60% Management is considering a capacity expansion that will permit an increase of $950,000 in yearly sales. The expansion will increase fixed costs by $95,000, but will not affect the relationship between sales and variable costs.Compute the break-even sales (in units) for the current year.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

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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