Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000 Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000 Gross Profit $ 1,875,000 Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000 Operating Income $ 875,000The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is: $2,155,172. $1,865,672. $2,625,000. $1,724,138.
Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below. Sales $ 3,500,000 Cost of sales: Direct Material $ 500,000 Direct labor 250,000 Variable Overhead 275,000 Fixed Overhead 600,000 1,625,000 Gross Profit $ 1,875,000 Selling and General & Admin. Exp. Variable 750,000 Fixed 250,000 1,000,000 Operating Income $ 875,000The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is: $2,155,172. $1,865,672. $2,625,000. $1,724,138.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter8: Budgeting For Planning And Control
Section: Chapter Questions
Problem 10CE: Coral Seas Jewelry Company makes and sells costume jewelry. For the coming year, Coral Seas expects...
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Evergreen Corporation manufactures circuit boards and is in the process of preparing next year's budget. The pro forma income statement for the current year is presented below.
The break-even point (rounded to the nearest dollar) for Evergreen Corporation for the current year is:
| Sales | $ | 3,500,000 | |||
| Cost of sales: | |||||
| Direct Material | $ | 500,000 | |||
| Direct labor | 250,000 | ||||
| Variable Overhead | 275,000 | ||||
| Fixed Overhead | 600,000 | 1,625,000 | |||
| Gross Profit | $ | 1,875,000 | |||
| Selling and General & Admin. Exp. | |||||
| Variable | 750,000 | ||||
| Fixed | 250,000 | 1,000,000 | |||
| Operating Income | $ | 875,000 |
|
$2,155,172.
|
||
|
$1,865,672.
|
||
|
$2,625,000.
|
||
|
$1,724,138.
|
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