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sale s No sales force
fo rc e
Pittman Company
Budgeted Income Statement
For year Ended December
Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 16,000,000
Manufacturing costs:
Variable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. $7,200,000
Fixed overhead. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 2,340,000 9,540,000
Break-even point in dollar sales if the company employs its own sales force.
Fixed costs $7,125,000
= =$15,000,000
CM ratio 0.475
Presentation by: The Gainers
QUESTION # 2
Vo lume o f sale s that wo uld be
0.125X = $ 2,325,000
X = $2,325,000
0.125
X = $18,600,000
Question #4