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Unformatted text preview: New fixed costs $200,000 Income from operations Err:522 Breakeven in units (expansion) 107,200 sales needed to reach 2010 target 229,600 With Expansion Sales $- Variable COGS Err:522 21% Variable Selling Err:522 9% Variable administrative Err:522 3% Contribution margin Err:522 67% Fixed COGS $2,400,000 Fixed Selling $1,500,000 Fixed administrative $1,260,000 New fixed costs $200,000 Income from operations $5,920,000 8. When adjusting for the expansion I don't think the fixed costs will change. When there is more activity then the variable cost will rise. I think they should sell more stuff before expanding....
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This note was uploaded on 02/23/2012 for the course ACC 101 taught by Professor Jeff during the Spring '12 term at Lansing.
- Spring '12