Haines Corporation has a predicted operating income of $80,000. Its total variable expenses are $25,000 and its total fixed expenses are $24,000. The company has a unit contribution margin of $20 on its sole product.
a. Calculate the break-even in sales units.
b. Calculate the break-even in sales units if the company's fixed expenses double from $24,000 to $48,000.

Question

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The Answer of Haines Corporation has a predicted operating income of $80,000. Its total variable expenses are $25,000 and its total fixed expenses are $24,000. The company has a unit contribution margin of $20 on its sole product.
a. Calculate the break-even in sales units.
b. Calculate the break-even in sales units if the company's fixed expenses double from $24,000 to $48,000.

Haines Corporation Has a Predicted Operating Income of $80,000