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# Kincaid Company sells flags with team logos Kincaid has fixed costs of \$664000 per year plus variable costs of \$450 per flag Each flag sells for \$1250 Determine the number of flags Kincaid must

Kincaid Company sells flags with team logos. Kincaid has fixed costs of \$664,000 per year plus variable costs of \$4.50 per flag. Each flag sells for \$12.50 Determine the number of flags Kincaid must sell each year to break even. Determine the dollar sales Kincaid need to earn \$33, 600 for this year, round the contribution margin to two decimal points (use page 135 as a reference) The company is considering an expansion that will increase fixed costs by 24% and variable costs by \$0.25 per flag. Compute the new breakeven point in units and in dollars. Should Kincaid undertake the expansion? Provide your reasoning. Round your answers to the nearest whole number.

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Apr 01 2020 View more View Less