The Parry company's breakeven point in units is 20,000. Assuming that variable costs are 30% and fixed costs are $100,000, what is the company's projected operating income if sales are $750,000?

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Quizplus · Accepted Answer

Sales = $750,000Variable costs = 30% of sales = $225,000Fixed costs = $100,000Total costs = $325,000Operating income = Sales - Total costs = $750,000 - $325,000 = $425,000Projected operating income = $425,000

The Parry Company's Breakeven Point in Units Is 20,000