The Operating Budget of the Omega Twelve Company Contains the Following

question 23

Essay

The operating budget of the Omega Twelve Company contains the following information.
Sales at 92% of capacity $644 000
Fixed costs $215 000
Variable costs 373 520 588 520
Net income $55 480
a) Draw a detailed break-even chart.
b) Compute the break-even point as a percent of capacity.
c) Determine the break-even point in dollars if fixed costs are reduced by $11 200 while variable costs are changed to 62% of sales.