Compute the break-even point in units (number of skates). (Round your answer to the nearest whole...

 

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Compute the break-even point in units (number of skates). (Round your answer to the nearest whole number.) The Harding Company manufactures skates. The company's income statement for 20X1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (12,500 skates @ $100 each) Variable costs (12,500 skates at $45) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (20%) Earnings after taxes (EAT) $ 1,250,000 562,500 400,000 $ $ $ 287,500 72,500 215,000 43,000 172,000 Compute the break-even point in units (number of skates). (Round your answer to the nearest whole number.) The Harding Company manufactures skates. The company's income statement for 20X1 is as follows: HARDING COMPANY Income Statement For the Year Ended December 31, 20X1 Sales (12,500 skates @ $100 each) Variable costs (12,500 skates at $45) Fixed costs Earnings before interest and taxes (EBIT) Interest expense Earnings before taxes (EBT) Income tax expense (20%) Earnings after taxes (EAT) $ 1,250,000 562,500 400,000 $ $ $ 287,500 72,500 215,000 43,000 172,000

Answer rating: 100% (QA)

SOLUTION The breakeven point is the level of sales at which the company earns zero profit ie the lev... View the full answer