You have been provided with the following information for Sell It, a business that sells earrings. Selling
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Question:
You have been provided with the following information for Sell It, a business that sells earrings.
- Selling price per pair of earrings = $200
- Variable cost per pair of earrings = $120
- Total Fixed cost per year = $140,000
- Required:
- 1. Breakeven point (no profit or loss) in pairs of earrings to be sold.
- 2. Number of units (pairs of earrings) that needs to be sold if the business wants to generate a profit of $35,000 for the year.
Related Book For
Managerial Accounting
ISBN: 978-1259307416
16th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
Posted Date: