Bountiful company had the following functional

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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.

Reference no: EM131020697

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