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High-Low Cost Estimation and Profit Planning
Comparative 2012 and 2013 income statements for Dakota Products Inc. follow:

DAKOTA PRODUCTS INC.
Comparative Income Statements
For Years Ending December 31, 2012 and 2013

2012

2013

Unit sales 6,000
9,000

Sales revenue $ 78,000 $ 117,000
Expenses (70,000) (85,000)
Profit (loss) $ 8,000
$ 32,000

(a) Determine the break-even point in units.
Answer

units

(b) Determine the unit sales volume required to earn a profit of $12,000.
Answer

units

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