The controllerof Hay Company prepared the following income statements

Sales
COS
Gross Margin
Selling and Admin costs
Income before taxes

January
February
420,000.00
450,000.00
226,000.00
235,000.00
194,000.00
215,000.00
105,000.00
108,000.00
89,000.00
107,000.00

30000
9,000.00
21,000.00
3000

0.30
0.10
0.40

if Hay Company produces a single product how much peso sales should it generate to break even

VC

FC
135000 100,000.00
45000
63,000.00
163,000.00 total FC

CM ratio

ate to break even

divide

163000
0.4
407500

271666.7 BE
81500 VC COS
163000 FC
27166.67 VC S&A
0