The below chart shows the expected monthly profit or loss of Horizon Company within the range of its monthly practical operating capacity. Using the information provided in the chart, answer the following questions.

a)  (10 pts) What is the company's break-even sales?

b)  (10 pts) What would be the value of break-even sales if the fixed cost increases by 20%, while everything else stays constant?

 

Transcribed Image Text:

90,000- 60,000– 30,000- 0- $150,000 $300,000 $450,000 $600,000 $750,000 -30,000- -60,000- -90,000- Sales (monthly) Profit/Loss 90,000- 60,000– 30,000- 0- $150,000 $300,000 $450,000 $600,000 $750,000 -30,000- -60,000- -90,000- Sales (monthly) Profit/Loss

Answer rating: 100% (QA)

a The Break even level of sales is 300000 Explanation Basically br... View the full answer