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:

Catharsis

A process of releasing and thereby providing relief from strong or repressed emotions, often through art, drama, or psychological means.

Humanistic Therapies

A group of psychotherapies that emphasize personal growth and the concept of self-actualization.

Psychoanalysis

A therapeutic approach and theory of psychological disorders originated by Sigmund Freud that emphasizes unconscious conflicts and childhood experiences.

Client-Centered Therapy

A psychotherapeutic approach developed by Carl Rogers that emphasizes the importance of creating a supportive, non-judgmental environment to facilitate a client's growth and self-discovery.