The Montanah Corporation manufactures jerseys with Ronaldo's signature stamped. Each jersey sells for USD12 and has a variable cost of USD7.00. There are USD20,000 in the fixed cost involved in the production process. a) Calculate the break-even in units. b) Calculate the sales (in units) needed to earn a profit of USD15,000.
The Montanah Corporation manufactures jerseys with Ronaldo's signature stamped. Each jersey sells for USD12 and has a variable cost of USD7.00. There are USD20,000 in the fixed cost involved in the production process. a) Calculate the break-even in units. b) Calculate the sales (in units) needed to earn a profit of USD15,000.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8E
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The Montanah Corporation manufactures jerseys with Ronaldo's signature stamped. Each jersey sells for USD12 and has a variable cost of USD7.00. There are USD20,000 in the fixed cost involved in the production process.
a) Calculate the break-even in units.
b) Calculate the sales (in units) needed to earn a profit of USD15,000.
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