Diamond Jim s makes and sells class rings for local schools Diamond Jim’s makes and sells class rings for local schools

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Diamond Jim s makes and sells class rings for local schools

Diamond Jim’s makes and sells class rings for local schools. Operating information is as follows:
Selling price per ring ……….. $600
Variable cost per ring
Rings and stones ……….. $220
Sales commissions ………… 48
Overhead ………….. 32
Annual fixed cost
Selling expenses ……….. $180,000
Administrative expenses …….. 105,000
Manufacturing …………. 60,000
a. What is Diamond Jim’s break-even point in rings?
b. What is Diamond Jim’s break-even point in sales dollars?
c. What would Diamond Jim’s break-even point be if sales commissions increased to $54?
d. What would Diamond Jim’s break-even point be if selling expenses decreased by $6,000?

 

 

Diamond Jim s makes and sells class rings for local schools