Question - Kibble Company had the following functional income statement for the month of July 2011:
Kibble Company Functional Income Statement
For the Month Ending July 31, 2011
Sales ($40 x 25,000) $1,000,000
Cost of goods sold:
Direct materials ($8 x 25,000)$200,000
Direct labor ($6 x 25,000) 150,000
Variable factory overhead ($5.00 x 25,000) 125,000
Fixed factory overhead 180,000 -655,000
Gross profit $345,000
Selling and administrative expenses:
Variable ($1.00 x 25,000) $25,000
Fixed 60,000 -85,000
Net income $ 260,000
Calculate Kibble Company's break-even sales in units.