Austin Automotive sells an auto accessory for $180 per unit. The company’s variable cost per unit...

Austin Automotive sells an auto accessory for $180 per unit. The company’s variable cost per unit is $30 for direct material, $25 per unit for direct labor, and $17 per unit for overhead. Annual fixed production overhead is $37,400, and fixed selling and administrative overhead is $25,240.

1. a -What is the break-even point in units sold and in sales dollars?

b-How many units would have to be sold to earn a target profit of $51,840?

c- If sales increase by $50,000 next period and there is no change in fixed expenses, by how much would you expect the net income to increase?

Expert Solution

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ekkarill92 answered 2 years ago

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