The Raquet Business is planning to manufacture a new type of tennis ball.Each tennis ball would sell for $3.75 and would require $1.75 in variable costs.In addition,annual fixed costs associated with the project would total $64,000.
a.Use the contribution margin approach to calculate:
(1)the breakeven point in units
(2)the breakeven point in dollars
b.Determine the operating income or loss at a sales volume of 30,000 tennis balls.
c.Determine the number of tennis balls that must be sold to earn a profit of $80,000.

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The Answer of The Raquet Business is planning to manufacture a new type of tennis ball.Each tennis ball would sell for $3.75 and would require $1.75 in variable costs.In addition,annual fixed costs associated with the project would total $64,000.
a.Use the contribution margin approach to calculate:
(1)the breakeven point in units
(2)the breakeven point in dollars
b.Determine the operating income or loss at a sales volume of 30,000 tennis balls.
c.Determine the number of tennis balls that must be sold to earn a profit of $80,000.

The Raquet Business Is Planning to Manufacture a New Type