Question: A ceramics manufacturer sold cups last year for 7 50 each

A ceramics manufacturer sold cups last year for $7.50 each. Variable costs of manufacturing were $2.25 per unit. The company needed to sell 20,000 cups to break even. Net income was $5,040. This year the company expects the price per cup to be $9.00, variable manufacturing costs to increase 33.3 percent, and fixed costs to increase 10 percent. How many cups (rounded) does the company need to sell this year to break even?
a. 17,111
b. 17,500
c. 19,250
d. 25,667

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  • CreatedSeptember 01, 2015
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