company has following data for 2011 sales (80,000 units)...... $5,660,000 cost o

Question

company has following data for 2011 sales (80,000 units)...... $5,660,000 cost of goods sold........$2,100,000 gross profit............3,560,000 Expenses- selling............ 1,500,000 admin. expenses......$900,000 income from operations.....$1,160,000 cost of goods sold is made equally between fixed and variable costs: fixed costs account for 30%of selling expenses, variable costs account for 70% variable costs account for 40% of admin. expenses, fixed costs 60% A new product is being considered for production that may increase sales by $884,375 in 2012 This new product would increase fixed costs by 265,000- but will not affect relationship between sales/variable costs Can someone help me find the following- break even unit sales for 2011 (not including new product) brean even unit sales WITH the new product included the amount of unit sales needed w/new product in 2012 to keep income from operations the SAME as 2011 the max amount of income from operations possible w/the new product if new product is accepted and sales remain same as 2011, what will income or loss be for 2012 sales? I will rate the answer 5 star, please if anyone understands this id appreciate it (posted a similar question yesterday but now need to calculate different answers)

Explanation / Answer

http://www.accountingcoach.com/online-accounting-course/01Xpg02.html

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.