Question

A division of a company produces income tax apps for smartphones. Each income tax app sells for $9. The monthly fixed costs incurred by the division are $20,000, and the variable cost of producing each income tax app is $4.
(a) Find the break-even point for the division.

(x, y) =



Incorrect: Your answer is incorrect.





(b) What should be the level of sales in order for the division to realize a 10% profit over the cost of making the income tax apps? (Round your answer up to the nearest whole number.)

income tax apps

Answer 1

Answer:

a) The break-even point for the division (x, y) = ( 4000, 36000)

b) ) What should be the level of sales in order for the division to realize a 10% profit = 4783

Step-by-step explanation:

The detailed steps and appropriate analysis is as shown in the attachment.