The DesMaris Company had the following income statement for the month of November 2018:

DesMaris Company Income Statement For the Month of November 2018
Sales ($60 × 10,000)		$600,000
Cost of goods sold:
Direct materials ($12 × 10,000)	$120,000
Direct labor ($9 × 10,000)	90,000
Variable factory overhead ($7.50 × 10,000)	75,000
Fixed factory overhead	120,000	405,000
Gross profit		$195,000
Selling and administrative expenses:
Variable ($1.50 × 10,000)	$15,000
Fixed	90,000	105,000
Operating income		$90,000

DesMaris Company's break-even sales volume is

a.20,000 units.

b.10,000 units.

c.7,000 units.

d.11,211 units.

Answer rating: 100% (QA)

Solution Breakeven sales volume Fixed costsContribu... View the full answer