Reference no: EM132669973

Question - The operating budget of Bea Company contains the following information:

Sales at 80% capacity $400,000

Fixed Costs $105,000

Variable Costs$260,000

Total cost $365,000

Net Income $ 35,000

a) Draw a detailed break-even chart.

b) Compute the break-even point as a percentage of capacity and in dollars.

c) Determine the net income at 40% of capacity.

d) Determine the sales volume as a percentage of capacity to generate a net income of $61,250.

e) Determine the break-even point in dollars if fixed costs are reduced by $11,200 while variable costs are changed to 72% of sales.