Wayfair Co. reported the following results from the sale of 5,500 tables in May: sales $300,000, variable costs$165,000, fixed costs $85,000, and net income $50,000. Assume that Wayfair increases the selling price oftables by 10% on June 1. How much sales are needed by Wayfair to break even?

Break Even Point (BEP) :— It is the point at which total cost is equal to total revenue. At this…

Answered: Wayfair Co. reported the following…

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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Wayfair Co. reported the following results from the sale of 5,500 tables in May: sales $300,000, variable costs $165,000, fixed costs $85,000, and net income $50,000. Assume that Wayfair increases the selling price of tables by 10% on June 1. How much sales are needed by Wayfair to break even?