The Sunland Company sells sports decals that can be personalized with a player’s name, a team name, and a jersey number for $8.00 each. Sunland's variable costs are the $2.50 it pays its supplier for each decal and $0.60 in operating costs to personalize and sell each decal. The results of last month’s operations are as follows: Sales revenue $16,000 Cost of goods sold 5,000 Gross profit 11,000 Operating expenses 5,365 Operating income $5,635 What is Sunland’s monthly breakeven point in units? In dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 25,000.)
The Sunland Company sells sports decals that can be personalized with a player’s name, a team name, and a jersey number for $8.00 each. Sunland's variable costs are the $2.50 it pays its supplier for each decal and $0.60 in operating costs to personalize and sell each decal. The results of last month’s operations are as follows: Sales revenue $16,000 Cost of goods sold 5,000 Gross profit 11,000 Operating expenses 5,365 Operating income $5,635 What is Sunland’s monthly breakeven point in units? In dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 25,000.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The Sunland Company sells sports decals that can be personalized with a player’s name, a team name, and a jersey number for $8.00 each. Sunland's variable costs are the $2.50 it pays its supplier for each decal and $0.60 in operating costs to personalize and sell each decal. The results of last month’s operations are as follows:
| Sales revenue | $16,000 | |
| Cost of goods sold | 5,000 | |
| Gross profit | 11,000 | |
| Operating expenses | 5,365 | |
| Operating income |
$5,635 |
What is Sunland’s monthly breakeven point in units? In dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 25,000.)
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