The condensed income statement for the Kimberly and Matthew partnership for 2022 is as follows. Kimberly and Matthew Company Income Statement For the Year Ended December 31, 2022 Sales (270,000 units) Cost of goods sold Gross profit Operating expenses Selling Administrative Net loss $1,350,000 936,000 414,000 $270,000 156,600 426,600 $(12,600) A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable. Administrative expenses are $94,500 fixed. (a) Compute the break-even point in sales dollars and in sales units for 2022. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.) Break-even point in sales dollars $ Break-even point in units units

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The condensed income statement for the Kimberly and Matthew partnership for 2022 is as follows.
Kimberly and Matthew Company
Income Statement
For the Year Ended December 31, 2022
Sales (270,000 units)
Cost of goods sold
Gross profit
Operating expenses
Selling
Administrative
Net loss
$1,350,000
936,000
414,000
$270,000
156,600
426,600
$(12,600)
A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable.
Administrative expenses are $94,500 fixed.
(a)
Compute the break-even point in sales dollars and in sales units for 2022. (Round intermediate calculations to 2 decimal
places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.)
Break-even point in sales dollars
$
Break-even point in units
units
Transcribed Image Text:The condensed income statement for the Kimberly and Matthew partnership for 2022 is as follows. Kimberly and Matthew Company Income Statement For the Year Ended December 31, 2022 Sales (270,000 units) Cost of goods sold Gross profit Operating expenses Selling Administrative Net loss $1,350,000 936,000 414,000 $270,000 156,600 426,600 $(12,600) A cost behavior analysis indicates that 75% of the cost of goods sold are variable and 42% of the selling expenses are variable. Administrative expenses are $94,500 fixed. (a) Compute the break-even point in sales dollars and in sales units for 2022. (Round intermediate calculations to 2 decimal places, e.g. 15.25 and final answers to 0 decimal places, e.g. 2,520.) Break-even point in sales dollars $ Break-even point in units units
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