Bill produces a miracle tool. His variable costs are $20 per unit and his fixed costs are $22 500. His break-even point is 30 000 units.
a. What is Bill's selling price per unit?
b. What is Bill's profit at 50 000 units of sales?
c. What would Bill's profits at 50 000 units of sales be if Bill were able to reduce his variable costs by $5 per unit?

Question

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The Answer of Bill produces a miracle tool. His variable costs are $20 per unit and his fixed costs are $22 500. His break-even point is 30 000 units.
a. What is Bill's selling price per unit?
b. What is Bill's profit at 50 000 units of sales?
c. What would Bill's profits at 50 000 units of sales be if Bill were able to reduce his variable costs by $5 per unit?

Bill Produces a Miracle Tool