Distributor sell in a given year to break-even


Question: Consider the following information for a big-screen television distributor:
           
Sales price per TV                $1,500
Variable costs per TV            $1,100
Fixed costs per year          $120,000
Depreciation per year          $20,000
Tax rate                                   35%
           
How many units must the distributor sell in a given year to break-even (in terms of accounting profit)?         

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Distributor sell in a given year to break-even
Reference No:- TGS01934350

Now Priced at $20 (50% Discount)

Recommended (98%)

Rated (4.3/5)