Mr. Colin is the managerial accountant in charge of the Company Pose & Drink, that sells water bottles. He determined that the fixed cost of the Company is $15,000, which consists of executive salaries, administrative expenses, and Fixed MOH is 20% of the total fixed cost. The Variable cost of production of a single bottle is $ 40. The water bottles are sold at a premium price of $62. The company produces and sells 750 water bottles.

Required: determine the following:

1. the present yearly net operating income or loss?
2. the present break-even point in unit sales and dollar sales
3. the number of units to sell to generate the profit of $ 18000.

Answer rating: 100% (QA)

Fixed Costs 15000 Fixed Manufacturing Overheads 20 of 15000 3000 Variable Costs 40unit Sellin... View the full answer