The condensed budgeted income statement for the Helen and Donald partnership for 2022 is as...
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Accounting
The condensed budgeted income statement for the Helen and Donald partnership for 2022 is as follows:
HELEN AND DONALD LLP Income Statement Year Ending December 31, 2022
Sales (259,200 units)
$1,296,000
Cost of goods sold
864,000
Gross profit
432,000
Operating expenses
Selling
$302,400
Administrative
162,000
464,400
Operating loss
$(32,400)
A cost behaviour analysis indicates that 75% of the cost of goods sold is variable, 42% of the selling expenses are variable, and 40% of the administrative expenses are variable. (Use the CVP income statement format in calculating operating income.)
(a)
Calculate the break-even point in total sales dollars and in units for 2022. (Round contribution margin per unit to 2 decimal places, e.g. 1.25, contribution margin ratio to 1 decimal place, e.g. 15.2% and final answers to 0 decimal places, e.g. 5,275.)
Break-even point in sales
$enter a dollar amount
Break-even point in units
enter a number of units
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