CVP#1 - Goalie's Ball; Background information for Goalie's Ball, Inc.
Goalie’s Ball, Inc. manufactures soccer balls. The company has a soccer ball that sells for $30 per ball. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $24 per ball, of which 80% is direct labor cost.
In 2021, the company sold 20,000 of these soccer balls, with the following results:
Sales (20,000 balls)
$600,000
Variable expenses
$480,000
Contribution margin
$120,000
Fixed expenses
$85,000
Net operating income
$35,000
CVP#1 - Goalie's Ball; Part A
Use the information provided above for Goalie's Ball. Compute 2021's break-even point in soccer balls for Goalie's Ball (Round your final answer up the nearest unit. i.e. 8,122.41 = 8,123). Please show all calculations.
