Ditex is a manufacturer of digital cameras and is preparing production and sales forecasts for the coming fiscal year. The company needs to determine the point at which the projected sales revenue will equal the total of all fixed and variable costs. Fixed costs are estimated to be $314,390, and variable costs are expected to be maintained at $150 per camera. Each camera will sell for $299. Compute (a) the breakeven point in sales units and (b) the breakeven point in sales dollars.

Question

Quizplus · Accepted Answer

The Answer of Ditex is a manufacturer of digital cameras and is preparing production and sales forecasts for the coming fiscal year. The company needs to determine the point at which the projected sales revenue will equal the total of all fixed and variable costs. Fixed costs are estimated to be $314,390, and variable costs are expected to be maintained at $150 per camera. Each camera will sell for $299. Compute (a) the breakeven point in sales units and (b) the breakeven point in sales dollars.

Ditex Is a Manufacturer of Digital Cameras and Is Preparing