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What will be Abado’s breakeven point in sales dollars  ?

What will be Abado’s breakeven point in sales dollars  ?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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What will be Abado’s breakeven point in sales dollars  ?

 

 

On this educational webpage, we present the Contribution Income Statement for Abadoofiles, illustrating financial data for Math Testing, Reading Testing, and the Total Company. The statement is organized into three main sections: Total, Per Unit, and Company-Wide summaries for both subjects. ### Abadoofiles Contribution Income Statement #### Math Testing 1. **Sales** - Total: $1,200,000 - Per Unit: $20 2. **Variable Expenses** - Total: $840,000 - Per Unit: $14 3. **Contribution Margin** - Total: $360,000 - Per Unit: $6 4. **Fixed Expenses** - Total: $240,000 (not displayed in the image but inferred from total company fixed expenses divided by two) 5. **Operating Income / (Loss)** - Total: (not calculated in the image but inferred by subtracting total fixed expenses from total contribution margin, i.e., $360,000 - $240,000 = $120,000) #### Reading Testing 1. **Sales** - Total: $1,200,000 - Per Unit: $20 2. **Variable Expenses** - Total: $1,080,000 - Per Unit: $18 3. **Contribution Margin** - Total: $120,000 - Per Unit: $2 4. **Fixed Expenses** - Total: $240,000 (not displayed in the image but inferred from total company fixed expenses divided by two) 5. **Operating Income / (Loss)** - Total: (not calculated in the image but inferred by subtracting total fixed expenses from total contribution margin, i.e., $120,000 - $240,000 = -$120,000) #### Total Company 1. **Sales** - Total: $2,400,000 2. **Variable Expenses** - Total: $1,920,000 3. **Contribution Margin** - Total: $480,000 4. **Fixed Expenses** - Total: $360,000 5. **Operating Income / (Loss)** - Total: $120,000 ### Graph/Diagram Explanation The table displayed serves as a financial overview, detailing the incomes and expenses per unit and in total for Math Testing, Reading Testing, and for the
Transcribed Image Text:On this educational webpage, we present the Contribution Income Statement for Abadoofiles, illustrating financial data for Math Testing, Reading Testing, and the Total Company. The statement is organized into three main sections: Total, Per Unit, and Company-Wide summaries for both subjects. ### Abadoofiles Contribution Income Statement #### Math Testing 1. **Sales** - Total: $1,200,000 - Per Unit: $20 2. **Variable Expenses** - Total: $840,000 - Per Unit: $14 3. **Contribution Margin** - Total: $360,000 - Per Unit: $6 4. **Fixed Expenses** - Total: $240,000 (not displayed in the image but inferred from total company fixed expenses divided by two) 5. **Operating Income / (Loss)** - Total: (not calculated in the image but inferred by subtracting total fixed expenses from total contribution margin, i.e., $360,000 - $240,000 = $120,000) #### Reading Testing 1. **Sales** - Total: $1,200,000 - Per Unit: $20 2. **Variable Expenses** - Total: $1,080,000 - Per Unit: $18 3. **Contribution Margin** - Total: $120,000 - Per Unit: $2 4. **Fixed Expenses** - Total: $240,000 (not displayed in the image but inferred from total company fixed expenses divided by two) 5. **Operating Income / (Loss)** - Total: (not calculated in the image but inferred by subtracting total fixed expenses from total contribution margin, i.e., $120,000 - $240,000 = -$120,000) #### Total Company 1. **Sales** - Total: $2,400,000 2. **Variable Expenses** - Total: $1,920,000 3. **Contribution Margin** - Total: $480,000 4. **Fixed Expenses** - Total: $360,000 5. **Operating Income / (Loss)** - Total: $120,000 ### Graph/Diagram Explanation The table displayed serves as a financial overview, detailing the incomes and expenses per unit and in total for Math Testing, Reading Testing, and for the
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