Reference no: EM132446485

Question - Given: CVP format income statement

Sales (100 units) $10000

Direct labor $1500

Direct Materials 1400

Factory overhead variable 1000

Selling expenses variable 600

Administrative Expenses variable 500

Total Variable Expenses 5000

Contribution margin $5000

Fixed Costs

Factory overhead fixed $500

Selling Expenses fixed 1000

Administrative expenses fixed 1000

Total fixed expenses 2500

Net income $2500

JIT production system no raw materials, WIP or finished goods inventories. Cost expected to stay the same for FY with exception of fixed factory overhead is budgeted to increase by $1700.

Required - How to determine cost of goods sold and breakeven points in units.