Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $57.00, the variable cost per unit is $18.00, the fixed costs are $7800.00 and capacity per period is 500 units.   a)Calculate the break-even point in units. b)Calculate the break-even point to nearest dollar. c)Calculate the break-even point as a percentage of capacity.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
Problem 7P
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Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $57.00, the variable cost per unit is $18.00, the fixed costs are $7800.00 and capacity per period is 500 units.  

a)Calculate the break-even point in units.


b)Calculate the break-even point to nearest dollar.


c)Calculate the break-even point as a percentage of capacity.

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