Question: 1. River Co. estimates fixed costs at $109,000, unit variable cost at $21, and unit selling price at $85. Determine (a) the breakeven point in

  1. 1. River Co. estimates fixed costs at $109,000, unit variable cost at $21, and unit selling price at $85. Determine
  2. (a) the breakeven point in sales units, 
  3. (b) the sales units required to earn an operating income of $150,000, 
  4. (c) the probable operating income if sales total $500,000. 


  1. 2. Crow Manufacturers , Inc projected sales of 75,000 bicycles for 2012. The estimated inventory for January 1, 2012 is 5,000 units, and the desired inventory for December 31, 2012 is 8,000 units. 
  2. What is the budgeted production (in units) for 2012?

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