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Essay Details:
Essay text:
Income Statement --- Numbers are in thousands
Revenues $300,000
Cost of goods sold:
Beg. Finished Goods Inventory $ 18,000
Cost of goods manufactured $136,000
Cost of goods Available $154,000
Ending Finished Goods $ 23,000
Cost of goods sold $131,000
Gross Margin $169,000
Operating Costs:
Marketing etc. $93,000
Administrative $29,000
Total Operating Costs $122,000
Operating Income $ 47,000
3-33
1. Breakeven Point = (Selling Price*Quantity) – (Variable Cost*Quantity) – Fixed Cost
Set OI to $0
($4,000*Q) – ($3,600*Q) - $480,000 = $0
($4,000*Q) – ($3,600*Q) = $480,000
CM = FC
CM = $4,000 - $3,600 = $400
$400Q = $480,000
Q = $480,000 / $400
Q = 1200 trips is the break even quantity
2...
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