SBN Corporation produces and sells custom cabinets. The following facts apply to its operation:
-Cabinets are produced in two colours: brown and black.
-Custom cabinets are priced from $300 to $500.
-Last year, SBN's profit was $45,000.
-SBN finances its assets with debt (60%)and equity (40%).
-SBN operates in a competitive market.
-SBN has a relatively high degree of operating leverage.
-Variable cost per unit is generally 40% of the product price.
Managers need to perform a breakeven analysis, but they are not sure which information they need. From the list above, identify relevant information to calculate the breakeven point with cost-volume-profit analysis. Discuss why each item you identify is relevant to the calculation.

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The Answer of SBN Corporation produces and sells custom cabinets. The following facts apply to its operation:
-Cabinets are produced in two colours: brown and black.
-Custom cabinets are priced from $300 to $500.
-Last year, SBN's profit was $45,000.
-SBN finances its assets with debt (60%)and equity (40%).
-SBN operates in a competitive market.
-SBN has a relatively high degree of operating leverage.
-Variable cost per unit is generally 40% of the product price.
Managers need to perform a breakeven analysis, but they are not sure which information they need. From the list above, identify relevant information to calculate the breakeven point with cost-volume-profit analysis. Discuss why each item you identify is relevant to the calculation.

SBN Corporation Produces and Sells Custom Cabinets