b) Draw a detailed break-even chart, making sure to label the variables on the y- and x-axes, as well as all other significant points in the chart c) Showing your calculations, calculate the break-even point (in units) if fixed costs are reduced to $7020

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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A manufacturer plans to introduce a new 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.

b) Draw a detailed break-even chart, making sure to label the variables on the y- and x-axes, as well as all other significant points in the chart

c) Showing your calculations, calculate the break-even point (in units) if fixed costs are reduced to $7020

 

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