You have gathered the following data for your new line of engagement rings.
Sales ........................................... $10,000,000
Fixed costs ....................................8,000,000
Variable costs ................................ 6,000,000
Mixed costs ..................................2,000,000 60% fixed; 40% variable
Unit sales .....................................2,000
Required:
(a) Calculate the unit selling price.
(b) Calculate the total variable costs.
(c) Calculate the total fixed costs.
(d) Calculate the breakeven point.
(e) Prepare the breakeven income statement.