hyland company breakeven analyasis 497459
5. TheincomestatementforHylandCompanyfor2014 appearsbelow:
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hyland company breakeven analyasis 497459
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|
Hyland Company Income Statement For the Year Ended December 31, 2014 |
|
|
Salesrevenue(40,000 units) |
1,000,000 |
|
Variableexpenses |
700,000 |
|
Contributionmargin |
300,000 |
|
Fixedexpenses |
345,000 |
|
Netincome(loss) |
(45,000) |
Instructions
Answerthe followingindependentquestionsandshowcomputationstosupportyouranswers:
1. Whatwasthecompany sbreak-evenpointinsalesdollarsin2014?
2. Howmanyadditionalunitswouldthecompanyhavetosellin2015 (comparedto2014) inorderto earnnetincomeof$45,000?
3. Ifthecompanyisabletoreducevariablecostsby$4.50 perunitin2015 and othercostsandunit revenuesremainunchanged,howmanyunitswillthecompanyhavetosellinordertoearnanet incomeof$45,000?
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