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Ghella [55]
3 years ago
14

Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for

this process, direct labor is $4.00 per package, and material is $4.75 per package. The selling price will be $12.50 per package.a. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.)Break-even point unitsb. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.)Break-even point $
Business
1 answer:
Brut [27]3 years ago
7 0

Answer:

break even point in units = 2,667

break even point in $ = $33,338

Explanation:

The break even point marks the point where a company is able to cover all its expenses. At this point the company is not losing money, but it is not making a profit either.

break even point in units = total fixed costs / contribution margin

  • total fixed costs = $10,000
  • contribution margin = $12.50 - ($4 + $4.75) = $12.50 - $8.75 = $3.75

break even point in units = $10,000 / $3.75 = 2,666.67 ≈ 2,667 units

break even point in $ = 2,667 units x $12.50 per unit = $33,337.50 ≈ $33,338

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3 years ago
In 1 or 2 sentences, describe the effect of competition on prices of items being sold.
yuradex [85]

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8 0
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6 0
3 years ago
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prisoha [69]

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<h3>Brexington salary in Charlieville </h3>

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3 0
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