In 2011, Grant Company has sales of $800,000, variable costs of $200,000, and fixed costs of $300,000. In 2012, the company expects annual property taxes to decrease by $15,000.
Required:
a. Calculate operating income and the breakeven point for 2011.
b. Calculate the breakeven point for 2012.

Question

Quizplus · Accepted Answer

The Answer of In 2011, Grant Company has sales of $800,000, variable costs of $200,000, and fixed costs of $300,000. In 2012, the company expects annual property taxes to decrease by $15,000.
Required:
a. Calculate operating income and the breakeven point for 2011.
b. Calculate the breakeven point for 2012.

In 2011, Grant Company Has Sales of $800,000, Variable Costs