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The condensed income statement for the Peri and Paul partnership for 2017 is as follows.
PERI AND PAUL COMPANY
Income Statement
For the Year Ended December 31, 2017
Sales (240,000 units) $1,200,000
Cost of goods sold 800,000
Gross profit 400,000
Operating expenses
Selling $280,000
Administrative 150,000 430,000
Net loss $(30,000 )
A cost behavior analysis indicates that 75% of the cost of goods sold are variable, 44% of the selling expenses are variable, and 44% of the administrative expenses are variable.
Compute the break-even point in total sales dollars and in units for 2017.
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The condensed income statement for the Peri and Paul partnership for 2017 is as follows.
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