The Boxed Candy's current years net income is $184,000.
Selling price per box $4.00
Selling commission per box $.40
Office rental $70,000
Advertising $60,000
Cost per box $2.00
Salaries $280,000
Insurance $30,000
Expected annual sales volume 390,000 boxes
What is the breakeven point in boxes of candy for the current year?
What volume of sales in dollars must be achieved in the coming year in order to breakeven if the selling price stays at $4.00 but the cost of candy increases by 20%?
What volume of sales in dollars must be achieved in the coming year in order to maintain the same net income as projected for the current year if the selling price stays at $4.00 but cost of candy increases by 20%?