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
(i)in units
(ii)in dollars
(iii)as a percent of capacity
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

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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
(i)in units
(ii)in dollars
(iii)as a percent of capacity
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