Use the below information to answer the following question. Sales (1,000 units) $200,000 110,000 Variable costs Contribution margin Fixed manufacturing costs 90,000 40,000 50,000 10,000 Operating income Interest Earnings before taxes Taxes (30%) 40,000 12,000 $ 28,000 1,000 Net income Shares Outstanding Refer to the table. This firm's break-even point in units is

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 36P: Faldo Company produces a single product. The projected income statement for the coming year, based...
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Use the below information to answer the following question.
Sales (1,000 units)
Variable costs
$200,000
110,000
90,000
40,000
50,000
10,000
40,000
12,000
$28,000
1,000
Contribution margin
Fixed manufacturing costs
Operating income
Interest
Earnings before taxes
Taxes (30%)
Net income
Shares Outstanding
Refer to the table. This firm's break-even point in units is
Multiple Choice
634 units.
714 units.
Transcribed Image Text:Use the below information to answer the following question. Sales (1,000 units) Variable costs $200,000 110,000 90,000 40,000 50,000 10,000 40,000 12,000 $28,000 1,000 Contribution margin Fixed manufacturing costs Operating income Interest Earnings before taxes Taxes (30%) Net income Shares Outstanding Refer to the table. This firm's break-even point in units is Multiple Choice 634 units. 714 units.
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