A manufacturer plans to introduce a new type of shirt based on the following information.
The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units.
a) Calculate the break-even point
b) Draw a detailed break-even chart.
c) Calculate the break-even point (in units) if fixed costs are reduced to $7020.00
d) Calculate the break-even point (in dollars) if the selling price is increased to $78.00

Question

A manufacturer plans to introduce a new type of shirt based on the following information.
The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units.
a) Calculate the break-even point
  b) Draw a detailed break-even chart.
c) Calculate the break-even point (in units) if fixed costs are reduced to $7020.00
d) Calculate the break-even point (in dollars) if the selling price is increased to $78.00

Quizplus · Accepted Answer

The Answer of A manufacturer plans to introduce a new type of shirt based on the following information.
The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units.
a) Calculate the break-even point
  b) Draw a detailed break-even chart.
c) Calculate the break-even point (in units) if fixed costs are reduced to $7020.00
d) Calculate the break-even point (in dollars) if the selling price is increased to $78.00

A Manufacturer Plans to Introduce a New Type of Shirt