the break even point last year was 636503
Barnes Corporation manufactures skateboards and is in the process of preparing next year’s budget. The pro forma income statement for the current year is presented below.
|
Sales (100 units at $100 a unit) |
|
$1,500,000 |
|
Cost of goods sold: |
|
|
|
Direct labor (variable) |
$250,000 |
|
|
Direct materials |
150,000 |
|
|
Variable factory overhead |
75,000 |
|
|
Fixed factory overhead |
100,000 |
575,000 |
|
Gross margin |
|
925,000 |
|
Selling expenses: |
|
|
|
Variable |
200,000 |
|
|
Fixed |
250,000 |
450,000 |
|
Net operating income |
|
$ 475,000 |
The break even point (rounded to the nearest dollar) for Barnes Corporation for the current year is
A. $146,341.
B. $636,364.
C. $729,730.
D. $181,818.
E. $658,537.