A firm manufactures a product that sells for $12 per unit. Variable cost per unit is $8 and fixed cost per period is $1200. Capacity per period is 1000 units.
For each of the following, perform a break-even analysis showing
(a) An algebraic statement of
(i) The revenue function,
(ii) The cost function;
(b) Computation of the break-even point
(i) In units,
(ii) In sales dollars,
(iii) As a percent of capacity;
(c) A detailed break-even chart.