Evaluate the quantity at which revenue equals to costs (break-even point). Assumptions: Fixed cost: 5000 Material costs per item: 2.25 Labor costs per item: 6.5 Shipping costs per 100 items: 200 Price per item: 12.99
Evaluate the quantity at which revenue equals to costs (break-even point). Assumptions: Fixed cost: 5000 Material costs per item: 2.25 Labor costs per item: 6.5 Shipping costs per 100 items: 200 Price per item: 12.99
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....
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Evaluate the quantity at which revenue equals to costs (break-even point). <use Goal seek>
Assumptions: | |
Fixed cost: | 5000 |
Material costs per item: | 2.25 |
Labor costs per item: | 6.5 |
Shipping costs per 100 items: | 200 |
Price per item: | 12.99 |
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