You are the general manager of a firm with fixed costs of $50,000. Your varla are $80 per unit and your selling price is $100 per unit. Determine: (a) Your break-even volume (number of units). (b) The volume at which your firm would lose $20,000. (c) The volume that would yield your firm a profit of $30,000.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...
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You are the general manager of a firm with fixed costs of $50,000. Your variable costs
are $80 per unit and your selling price is $100 per unit.
Determine:
(a) Your break-even volume (number of units).
(b) The volume at which your firm would lose $20,000.
(c) The volume that would yield your firm a profit of $30,000.
Transcribed Image Text:You are the general manager of a firm with fixed costs of $50,000. Your variable costs are $80 per unit and your selling price is $100 per unit. Determine: (a) Your break-even volume (number of units). (b) The volume at which your firm would lose $20,000. (c) The volume that would yield your firm a profit of $30,000.
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