In 2011,SSPC Company Has Sales of 8,000 Units at $10

question 69

Essay

In 2011,SSPC Company has sales of 8,000 units at $10 each,variable costs totaling $20,000,and fixed costs of $30,000.In 2008,the company expects annual insurance costs to increase by $4,000 to $9,000.
Required:
a.Calculate operating income and the breakeven point in units for 2011.
b.Calculate the breakeven point in units for 2012.

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Definitions:

Strict Liability In Tort

A legal doctrine that holds an individual or entity liable for damages and loss, regardless of fault, in certain types of hazardous activities.

Defective Product

An item that is flawed or faulty in manufacturing or design, making it unsafe or unfit for its intended use.

Physical Harm

Injury or damage to the health of a person's body.

Unreasonably Dangerous

Describes a product or activity that poses a significant risk of injury to those using it in an expected or foreseeable manner, beyond what would be considered typical or manageable.