Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is$4.00, variable costs are $1.25 per dozen, and total fixed costs are $825.00. How many dozens of ears ofcorn must Corny and Sweet sell to breakeven?

Contribution margin per dozen = Selling price per dozen - Variable cost per dozen = $4.00 - $1.25 =…

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen i $4.00, variable costs are $1.25 per dozen, and total fixed costs are $825.00. How many dozens of ears of com must Corny and Sweet sell to breakeven?

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen i $4.00, variable costs are $1.25 per dozen, and total fixed costs are $825.00. How many dozens of ears of com must Corny and Sweet sell to breakeven?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 5P

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Corny and Sweet grows and sells sweet corn at its roadside produce stand. The selling price per dozen is
$4.00, variable costs are $1.25 per dozen, and total fixed costs are $825.00. How many dozens of ears of
corn must Corny and Sweet sell to breakeven?

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