What is the break-even point (rounded to the nearest dollar) for Lauterbach Corporation for the…


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What is the break-even point (rounded to the nearest dollar) for Lauterbach Corporation for the… 1 answer below » BREAK-EVEN IN SALES DOLLARS, CHANGES IN VARIABLES Lauterbach Corporation manufactures skateboards and is in the process of preparing next year’s budget. The pro forma income statement for the current year is as follows: View complete question » Sales $1,500,000 Cost of sales: Direct materials $250,000 Direct labor 150,000 Variable overhead 80,000 Fixed overhead 100,000 580,000 Gross profit $ 920,000 Selling and administrative expenses: BREAK-EVEN IN SALES DOLLARS, CHANGES IN VARIABLES Lauterbach Corporation manufactures skateboards and is in the process of preparing next year’s budget. The pro forma income statement for the current year is as follows: Sales $1,500,000 Cost of sales: Direct materials $250,000 Direct labor 150,000 Variable overhead 80,000 Fixed overhead 100,000 580,000 Gross profit $ 920,000 Selling and administrative expenses: Variable $300,000 Fixed 250,000 550,000 Operating income $ 370,000 Required: 1. What is the break-even point (rounded to the nearest dollar) for Lauterbach Corporation for the current year? 2. For the coming year, the management of Lauterbach Corporation anticipates a 10 percent increase in variable costs and a $45,000 increase in fixed expenses. What is the break-even point in dollars for next year? View less » Jul 24 2014 07:51 AM

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