A special order offering to buy 112,000 units has been received from a foreign distributor. The only selling costs that would be
1 answer:
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Answer:
Net Revenue = $4,500
Explanation:
Break Even point in units =
Here, provided
Break even point = 1,000 units
Contribution = Selling price - Variable Cost = $10 - $7 = $3
Putting these values in above,
We have,
= Fixed cost = $3,000
now when we sell 2,500 units we have
Revenue = 2,500 $10 = $25,000
Variable Cost = $7 2,500 = $17,500
Fixed cost = $3,000
Net Revenue = $25,000 - $17,500 - $3,000 = $4,500