Consider the following income statement and answer the questions that follow:

Question

Sales (100 units) $200
Variable costs ($.80 ea) 80
Fixed Costs 20
EBIT 100
Interest Expense 30
EBT 70
Income tax 24
Net Income 46

a. What is the firm’s Breakeven Point in units?
Draw a breakeven chart for this firm.

Answer 1

17

Answer 2

Consider the following income statement and answer the question that follows: Sales (100 units)..............$200 Variable costs ($.20 ea)......20 Fixed Costs.......................80 EBIT................................100 Interest Expense................30 EBT.................................70 Income tax.......................24 Net Income.......................46 What is the firm’s Breakeven Point in units?