Solve using the Contribution Margin approach. A small manufacturing operation can produce up to 250 units per
Question:
Solve using the Contribution Margin approach.
A small manufacturing operation can produce up to 250 units per week of a product that it sells for $20 per unit. The variable cost per unit is $12, and the fixed cost per week is $1200.
a. How many units must the business sell per week to break even?
b. Determine the firm’s weekly profit or loss if it sells:
(i) 120 units per week (ii) 250 units per week
c. At what level of sales will the net income be $400 per week?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a To break even the firms total revenue must equal its total costs The total cost consists of both f...View the full answer
Answered By
Mehwish Aziz
What I have learnt in my 8 years experience of tutoring is that you really need to have a friendly relationship with your students so they can come to you with their queries without any hesitation. I am quite hardworking and I have strong work ethics. Since I had never been one of those who always top in the class and always get A* no matter what, I can understand the fear of failure and can relate with my students at so many levels. I had always been one of those who had to work really hard to get decent grades. I am forever grateful to some of the amazing teachers that I have had who made learning one, and owing to whom I was able to get some extraordinary grades and get into one of the most prestigious universities of the country. Inspired by those same teachers, I am to be like one of them - who never gives up on her students and always believe in them!
3+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
