Question: Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is: a. At

Beta Inc. has based its budget forecast for next year on the assumption it will operate at 90% of capacity. The budget is:
Beta Inc. has based its budget forecast for next year

a. At what percentage of capacity would Beta break even?
b. What would be Beta's net income if it operates at 70% of capacity?

Sales revenue $18,000,000 Fixed costs Total variable costs $10,000,000 $6,000,000 Total costs Net income $16,000,000 $2,000,000

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