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)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter16: Cost-volume-profit Analysis
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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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