Goldman Company Budgeted Income Statement For the Year Ended
Sales (240,000 units) $18,600,000
Cost of goods sold (12,680,000)
Gross profit 5,920,000
Operating expenses (4,200,000)
Operating income $1,720,000
The following additional information is available:
The luggage carrier has a selling price of $75 per unit; variable production costs are $45.
The computer carrier has a selling price of $85 per unit; variable production costs are $43.
Variable selling costs are $5 per unit regardless of product type.
The 240,000 units sold will be sold in a ratio of three luggage carriers to one computer carrier.
Calculate the breakeven point in both units and dollars for Goldman Company.
a) Breakeven point in units: 94,800; Breakeven point in dollars: $7,110,000
b) Breakeven point in units: 89,600; Breakeven point in dollars: $7,120,000
c) Breakeven point in units: 91,200; Breakeven point in dollars: $7,140,000
d) Breakeven point in units: 86,400; Breakeven point in dollars: $7,150,000