1. A corporation sold X units of product for $Y each and has $M in total fixed and $L in total variable costs (a) Find its break-even point (in units) in terms of L, M, X and Y. (b) Use any or all of your answer to part (a) to find profit earned at a sales volume of T units above break-even. Explain your answer.

2. Explain how (a) a manufacturer would calculate its production requirements; (b) a college would analyze the number of students it needs to break even; and, (c) a hospital would select a new piece of durable medical equipment.

Answer rating: 100% (QA)

Part A The breakeven point is given by dividing the fixed costs by the price of goods minus the variable costs and from the information above the breakeven point ... View the full answer