Flash Gordon Memory (FGM) sells memory cards for $45 each. Fixed costs are $900,000 for output up
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Flash Gordon Memory (FGM) sells memory cards for $45 each. Fixed costs are $900,000 for output up to 200,000 cards. Variable costs are $25 per card.
(a) What is FGM’s operating income at sales of 75,000 cards?
(b) What is the operating breakeven point?
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a At 75000 units Sales 75000 x 45 3375000 Variable CGS 75000 x 25 1875000 G...View the full answer
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