Reference no: EM132289026

Question - Harrison Company had sales of $10,000 (100 units at $100 per). Manufacturing costs consisted of direct labor $1,500, direct materials $1,000, variable factory overhead $1,100, and fixed factory overhead $500. Selling expenses totaled $1,500 ($500 variable and $1,000 fixed), and administrative expenses totaled $1,600 ($410 variable and $1,190 fixed). Operating income was $2,800. Round all final answers to nearest dollar or whole number.

Requirements:

1. What is the break-even point in sales dollars and in units if the fixed factory overhead increased by $1,700?

2. What is the break-even point in sales dollars and in units if costs remain as originally projected?

3. What would be the operating income if sales units increased by 10%?