# Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics:

## Question:

Sales price . . . . . . . . . . . . . $ 18 each

Variable costs . . . . . . . . . . . 10 each

Fixed costs . . . . . . . . . . . . . 20,000 per month

Required

a. What number must Cambridge sell per month to break even?

b. What number must Cambridge sell to make an operating profit of $16,000 for the month?

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**Related Book For**

## Fundamentals of Cost Accounting

**ISBN:** 978-0077398194

3rd Edition

**Authors:** William Lanen, Shannon Anderson, Michael Maher