company has following data for 2011 sales (80,000 units)...... $5,660,000 cost o

Question

company has following data for 2011
sales (80,000 units)...... $5,660,000
cost of goods sold........$2,100,000
gross profit............3,560,000
Expenses:selling............ 1,500,000
admin. expenses......$900,000
income from operations.....$1,160,000

cost of goods sold is made equally between fixed and variable costs:
fixed costs account for 30%of selling expenses, variable costs account for 70%
variable costs account for 40% of admin. expenses, fixed costs 60%

A new product is being considered for production that may increase sales by $884,375 in 2012
This new product would increase fixed costs by 265,000- but will not affect relationship between sales/variable costs

Can someone help me find the following-
break even unit sales for 2011 (not including new product)
brean even unit sales WITH the new product included
the amount of unit sales needed w/new product in 2012 to keep income from operations the SAME as 2011
the max amount of income from operations possible w/the new product
if new product is accepted and sales remain same as 2011, what will income or loss be for 2012 sales?

I will rate the answer 5 star, please if anyone understands this id appreciate it
(posted a similar question yesterday but now need to calculate different answers)Ask a question...

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