In 2017, Craylon Company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $200,000. In 2018, the company expects annual property taxes to decrease by $15,000.
Required:
a.Calculate operating income and the breakeven point for 2017.
b.Calculate the breakeven point for 2018.

Question

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The Answer of In 2017, Craylon Company has sales of $1,000,000, variable costs of $250,000, and fixed costs of $200,000. In 2018, the company expects annual property taxes to decrease by $15,000.
Required:
a.Calculate operating income and the breakeven point for 2017.
b.Calculate the breakeven point for 2018.

In 2017, Craylon Company Has Sales of $1,000,000, Variable Costs