Answer:
Results are below.
Step-by-step explanation:
Giving the following information:
Selling price= $60
Unitary variable cost= $28
Fixed costs= $15,000
<u>First, we need to calculate the average total cost:</u>
Average cost= total cost / number of units
For example, for 1 unit and 10,000 units:
1 unit:
Average cost= 15,028/1 = 15,028
10,000 units:
Average cost= (15,000 + 28*10,000) / 10,000
Average cost= $29.5
<u>Now, we can calculate the break-even point in units:</u>
<u></u>
0= (60*x) - (28*x) - 15,000
x= number of units to break-even
0= 32x - 15,000
15,000/32= x
468.75=x
break-even point in units= 469
<u>For the desired profit of $10,000:</u>
10,000 = (60*x) - (28*x) - 15,000
25,000= 32x
781.25= x
Break-even point= 782 units
<u>Finally, fixed costs dropped by $8,000:</u>
0= 32x - 7,000
x= 7,000/32
x= 218.75
Break-even point= 219
Difference= 250 units
