Sleepy Time is a retaller of luxury bed frames located in Los Angeles, California. Due to a recent Industry-wide financial crisis, the CFO of Sleepy Time fears a significant drop in the firm's upcoming Income stream. The CFO asked you to use the company financial Information provided below. Sales price per unit $ 3,300.00 Per-unit variable costs: Invoice cost 2,550.00 Sales commissions 290.00 Total per-unit variable costs $ 2,840.00 12 1 Total annual fixed costs: Advertising $ 230,900 Rent Salaries 177,000 385,900 $ 793,800 Total annual fixed costs The annual breakeven point in dollars is: (Do not round Intermediate calculations.) Multiple Choice O $5,694,653. $5.394.653. $4.994.653. $5,494,653. $5,194,653.
Sleepy Time is a retaller of luxury bed frames located in Los Angeles, California. Due to a recent Industry-wide financial crisis, the CFO of Sleepy Time fears a significant drop in the firm's upcoming Income stream. The CFO asked you to use the company financial Information provided below. Sales price per unit $ 3,300.00 Per-unit variable costs: Invoice cost 2,550.00 Sales commissions 290.00 Total per-unit variable costs $ 2,840.00 12 1 Total annual fixed costs: Advertising $ 230,900 Rent Salaries 177,000 385,900 $ 793,800 Total annual fixed costs The annual breakeven point in dollars is: (Do not round Intermediate calculations.) Multiple Choice O $5,694,653. $5.394.653. $4.994.653. $5,494,653. $5,194,653.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sleepy Time is a retaller of luxury bed frames located in Los Angeles, California. Due to a recent Industry-wide financial crisis, the CFO of Sleepy Time fears a significant drop in the firm's upcoming
Income stream. The CFO asked you to use the company financial Information provided below.
Sales price per unit
Per-unit variable costs:
Invoice cost
Sales commissions
Total per-unit variable costs
Total annual fixed costs:
Advertising
Rent
Salaries
Total annual fixed costs
Multiple Choice
O
The annual breakeven point in dollars is: (Do not round Intermediate calculations.)
O
$5,694,653.
$5,394,653.
$4.994,653.
$5,494,653.
$ 3,300.00
$5,194,653.
2,550.00
290.00
$ 2,840.00
$ 230,900
177,000
385,900
$ 793,800
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