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aksik [14]
3 years ago
14

Rebotar Inc, makes basketballs. Their fixed costs are $3450 Variable costs are $12 per basketball, If the basketball is priced a

t $25 and 300 basketballs are sold, did Rebotar break even? How do you know Show all work.​
Business
1 answer:
worty [1.4K]3 years ago
6 0

Answer:

Break-even points = 265.38

Explanation:

Given:

Fixed cost = $3,450

Variable costs = $12

Selling price = $25

Number of balls sold = 300

Find:

Break even costs

Computation:

Contribution per unit = Sales - Variable costs

Contribution per unit = $25- $12

Contribution per unit = $13

Break-even points = Fixed cost / Contribution per unit

Break-even points = $3,450 /$13

Break-even points = 265.38

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Answer:

222

Explanation:

Economic Order Quantity = √[(2XCₒXD)/Cₕ]

Where:

Cₕ = cost of holding a unit of inventory for a year

Cₒ = cost of placing an order

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Ordering cost, Cₒ= $166

Annual demand, D= 4,153

Inventory holding cost, per item per year, Cₕ = $28

Economic Order Quantity = √[(2X166X4153)/28]

=√[1378796/28]

=√49242.71

=221.9

=222

The Annual Number of Orders to be placed is 222.

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