Preppy Co. makes and sells a single product. The current selling price is $30 per unit. Variable costs are $21 per unit, and fixed expenses total $90,000 per month. Sales volume for July totaled 12,000 units. Required:
a. Calculate the operating income for July.
b. Calculate the break-even point in units sold and total revenues.

Answer and Explanation:

The computation is shown below:

(a)  

Sales = 30 × 12,000 units = $360,000

(Less) variable costs = 21 × 12,000 units = $252,000

(Less) fixed costs = $90,000

Operating income = $18,000

(b)  

Break even point in units be X

X × 30 = X × 21 + $90,000

9X = $90,000

X = 10,000 units

Now  

Break even point in dollars is

= 10,000 × $30

= $300,000

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.