Problem #3 - At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $500 per unit and it takes place in a facilitv that has a monthly fixed cost of $250,000. If Freeze Inc. sells each unit at $1,000, how many units do they need to sell every month to break-even? What is the monthly revenue at the break-even point? What is the monthly variable cost at the break-even point? а. b. С.

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Author:James Stewart, Lothar Redlin, Saleem Watson
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Problem #3 – At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $500 per unit and it takes
place in a facilitv that has a monthly fixed cost of $250,000.
If Freeze Inc. sells each unit at $1,000, how many units do they need to sell every month to break-even?
What is the monthly revenue at the break-even point?
What is the monthly variable cost at the break-even point?
What is the total operating cost at the break-even point?
If Freeze Inc. sells 600 units at $1,000 each on a given month, calculate the profit.
а.
b.
C.
d.
е.
Transcribed Image Text:Problem #3 – At Freeze Inc. the manufacturing of each air conditioning has a variable cost of $500 per unit and it takes place in a facilitv that has a monthly fixed cost of $250,000. If Freeze Inc. sells each unit at $1,000, how many units do they need to sell every month to break-even? What is the monthly revenue at the break-even point? What is the monthly variable cost at the break-even point? What is the total operating cost at the break-even point? If Freeze Inc. sells 600 units at $1,000 each on a given month, calculate the profit. а. b. C. d. е.
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