Question: Crane Profiles provides testing services to school districts that wish to assess students reading and mathematical abilities. Last year Crane evaluated 60,000 math tests and
Crane Profiles provides testing services to school districts that wish to assess students reading and mathematical abilities. Last year Crane evaluated 60,000 math tests and 20,000 reading tests. An income statement for last year follows.
| Math Testing | Reading Testing | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Total | Per Unit | Total | Per Unit | Total Company | ||||||
| Sales revenue | $1,200,000 | $20 | $720,000 | $36 | $1,920,000 | |||||
| Variable expenses | 840,000 | 14 | 360,000 | 18 | 1,200,000 | |||||
| Contribution margin | $360,000 | $6 | $360,000 | $18 | 720,000 | |||||
| Fixed expenses | 360,000 | |||||||||
| Operating income | $360,000 | |||||||||
(a)
What is Cranes breakeven point in sales dollars? (Use your answer of breakeven units to calculate the breakeven point in dollars. Round Breakeven units and point in dollar to 0 decimal places, e.g. 5,275.)
| Breakeven sales | $enter breakeven sales amount in dollars rounded to 0 decimal places |
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