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Bountiful Company had the following functional income statement for the month of May, 2011:
Bountiful Company
Functional Income Statement
For the Month Ending May 31, 2011
Sales (15,000 units)
$300,000
Cost of goods sold:
Direct materials
$60,000
Direct labor
45,000
Variable manufacturing overhead
37,500
Fixed factory overhead
50,000
192,500
Gross profit
$107,500
Selling and administrative expenses:
Variable
$ 7,500
Fixed
20,000
27,500
Net income
$ 80,000
Calculate Bountiful’s break-even sales in units.
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