Hyland Company Breakeven Analysis
Hyland Company, The income statement for Hyland Company for2014 appears below:
For the Year Ended December 31, 2014
|Sales revenue(40,000 units)||1,000,000|
Answer the following independent questions and show computations to support your answers:
1. What was the company’s break-even point in sales dollars in2014?
2. How many additional units would the company have to sell in2015 (comparedto2014) in order to earnnetincomeof$45,000?
3. If the company is able to reduce variable costs by $4.50 per uniti n2015 and other costs and unit revenues remain unchanged,how many units will the company have to sell in order to earn net incomeof$45,000?