Bountiful Company had the following functional income statement for the month of May, 2011:
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Bountiful Company
Functional Income Statement
For the Month Ending May 31, 2011
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Sales (15,000 units)
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$300,000
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Cost of goods sold:
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Direct materials
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$60,000
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Direct labor
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45,000
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Variable manufacturing overhead
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37,500
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Fixed factory overhead
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50,000
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192,500
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Gross profit
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$107,500
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Selling and administrative expenses:
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Variable
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$ 7,500
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Fixed
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20,000
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27,500
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Net income
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$ 80,000
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Calculate Bountiful’s break-even sales in units.