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Hyland Company_Breakeven Analyasis
Hyland Company_Breakeven Analyasis
5. TheincomestatementforHylandCompanyfor2014 appearsbelow:
|
Hyland Company Income Statement For the Year Ended December 31, 2014 |
|
| Salesrevenue(40,000 units) | 1,000,000 |
| Variableexpenses | 700,000 |
| Contributionmargin | 300,000 |
| Fixedexpenses | 345,000 |
| Netincome(loss) | (45,000) |
Instructions
Answerthe followingindependentquestionsandshowcomputationstosupportyouranswers:
1. Whatwasthecompany sbreak-evenpointinsalesdollarsin2014?
2. Howmanyadditionalunitswouldthecompanyhavetosellin2015 (comparedto2014) inorderto earnnetincomeof$45,000?
3. Ifthecompanyisabletoreducevariablecostsby$4.50 perunitin2015 and othercostsandunit revenuesremainunchanged,howmanyunitswillthecompanyhavetosellinordertoearnanet incomeof$45,000?
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