Estimating costs and profit
First-Class Company sells a single product.The per-unit selling price is $250,and variable costs are 60% of this selling price.Fixed costs are currently $68,000 per month.
(a)Calculate the monthly break-even point in units.________ Units.
(b)First-Class is considering the acquisition of new robotic equipment.Depreciation on the new robots will increase monthly fixed costs by $8,000,but reduce variable costs to 50% of the current selling price.If First-Class acquires the robots what will be the new monthly break-even point in units? ________ Units.

Question

Quizplus · Accepted Answer

The Answer of Estimating costs and profit
First-Class Company sells a single product.The per-unit selling price is $250,and variable costs are 60% of this selling price.Fixed costs are currently $68,000 per month.
(a)Calculate the monthly break-even point in units.________ Units.
(b)First-Class is considering the acquisition of new robotic equipment.Depreciation on the new robots will increase monthly fixed costs by $8,000,but reduce variable costs to 50% of the current selling price.If First-Class acquires the robots what will be the new monthly break-even point in units? ________ Units.

Estimating Costs and Profit