Exercise 19-11

Cost Behavior and Cost-Volume-Profit Analysis Warren / Reeve / Duchac Exercise 19-11 solution

Break-even sales and sales to realize income from operations.

For the current year ending March 31, Jwork Company expects fixed costs of $440,000, a unit variable cost of $50, and a unit selling price of $75.

a. Compute the anticipated break-even sales (units).
17,600 units

b. Compute the sales (units) required to realize income from operations of $90,000.
21,200 units