Bridgeton, Co. sells a specific brand of high-end coffee grinders. The grinder manufacturer provides a suggested retail price for each grinder. Bridgeton sells the coffee grinders at the retail prices the manufacturer suggests. The cost of the coffee grinders to Bridgeton is 70% of the suggested retail price. The suggested sales price on a grinder is $125. Bridgeton's other variable costs on the grinders are 5% of the sales price. Bridgeton has annual fixed costs of $420,000. 1. With the above cost structure, what dollar amount of sales must Bridgeton achieve to be able to break even? 2. With the above cost structure, what number of units must Bridgeton sell to be able to break even? 3. Assume Bridgeton expects to sell 18,000 high-end coffee grinders. 

Prepare a contribution income statement for Bridgeton for this level (18,000 high-end units) of sales. Assume a tax rate of 21%

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To answer these questions lets break them down one by one Breakeven Sales Revenue To calculate the b... View the full answer