Mini-Case 12-6: Crazy Harry's

question 8

Essay

Mini-Case 12-6: Crazy Harry's
The following is a pro forma income statement for Crazy Harry's.
Crazy Harry's
Pro Forma Income Statement
Sales $96,000
Cost of Goods Sold 46,240
Gross Profit $49,760
Fixed Expenses
Rent $2,400
Insurance 3,000
Salaries 16,500
Taxes 1,100
Miscellaneous Fixed Expenses 900
Total Fixed Expenses $23,900
Variable Expenses
Wages $11,200
Advertising 5,700
Benefits 2,800
Other Variable Expenses 1,120
Total Variable Expenses $20,080
Net Profit $5,040
-Calculate Harry's break-even point.

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Definitions:

Olecranon Fossa

A large depression located on the posterior aspect of the humerus, accommodating the olecranon of the ulna when the arm is extended.

Olecranon Process

The bony projection at the upper end of the ulna, forming the point of the elbow.

Ulnar Notch

A small depression on the distal end of the radius bone, where it articulates with the head of the ulna bone in the forearm.

Articulates

Describes how bones connect or join with each other, often to form joints that allow for movement and support of the body.