You work for a sprinkler manufacturing company. You want to propose the manufacturing of a new type of sprinkler head. The manufacuring process has a fixed annual cost of $750,000. If you want to charge $275 per sprinkler head, and each sprinkler head costs $205 to manufacture, how many sprinkler heads will you need to sell in order to break even?      9,882 sprinkler heads     10,715 sprinkler heads     7,515 sprinkler heads     15,312 sprinkler heads

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8EB: Shonda & Shonda is a company that does land surveys and engineering consulting. They have an...
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  1. You work for a sprinkler manufacturing company. You want to propose the manufacturing of a new type of sprinkler head. The manufacuring process has a fixed annual cost of $750,000. If you want to charge $275 per sprinkler head, and each sprinkler head costs $205 to manufacture, how many sprinkler heads will you need to sell in order to break even? 

       

    9,882 sprinkler heads

       

    10,715 sprinkler heads

       

    7,515 sprinkler heads

       

    15,312 sprinkler heads

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