Mickeys Mousetraps wants to know how many of its Magic Mouse Trappers it needs to sell in
Question:
Mickey’s Mousetraps wants to know how many of its “Magic Mouse Trappers” it needs to sell in order to breakeven. The product sells for $20, it costs $5 per unit to make, and the company’s fixed costs are $30,000.Mickey’s Mousetraps wants to know how many dollars worth of its “Deluxe Mighty Mouse Trappers” it needs to sell in order to break-even on costs. Again, the product sells for $20, it costs $5 per unit to make, and the company’s fixed costs are $30,000.
What is his breakeven volume?
Swiss entrepreneur Herr Zeitgeist buys watch faces from Italy for 5 Euros, watch mechanisms for 15 Euros from Spain, and hires assembly in Portugal for 10 Euros per watch. His only other expense is 100,000 Euros for the Zuricher Flughafen ad agency to place ads in in- flight magazines to build the Zeitgeist brand. Herr Zeitgeist sells each watch for 50 Euros to airport duty-free shops, earning the retailer an 80% margin.
What is his breakeven volume?
Data Analysis and Decision Making
ISBN: 978-0538476126
4th edition
Authors: Christian Albright, Wayne Winston, Christopher Zappe