Break-Even Sales and Sales to Realize Income from Operations For the current year ended October 31, Friedman Company expects fixed costs of $361,200, a unit variable cost of $43, and a unit selling price of $64. a. Compute the anticipated break-even sales (units). units b. Compute the sales (units) required to realize income from operations of $84,000. units

a. Compute the anticipated break-even sales (units). units

b. Compute the sales (units) required to realize income from operations of $84,000. units

Explanation:

break even point in units = total fixed costs / contribution margin per unit

break even point in units = $361,200 / $21 = 17,200 units

break even point + expected profits = (total fixed costs + expected profits) / contribution margin per unit

break even point + expected profits in units = $445,200 / $21 = 21,200 units