A company has annual fixed costs of birr 14,000. In 1996 sales amounted to birr 60,000 as compared with birr 45,000 in 1995 and profit in 1996 was birr 4,200 higher than in 1995. i. At what level of sales does the company breakeven? ii. Determine profit or loss on a forecast sales volume of birr 80,000 iii. If there is a reduction in selling price in 1997 by 10% and the company desires to earn the same profit as in 1996, what would be required sales volume?

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.