Hospital Supply Inc produces hydraulic hoists that were used by hospitals to move bedridden patients. The costs of manufacturing and marketing hydraulic hoists at the company’s normal volume of 3,000 unit per month are as follows:

Exhibit 1: Costs per Unit of Hydraulic Hoists
Unit Manufacturing Costs		$	$
	Variable Materials	550.00
	Variable Labor	825.00
	Variable Overhead	420.00
	Fixed Overhead	660.00
	Total Unit Manufacturing Costs		2,455.00
Unit Marketing Costs
	Variable	275.00
	Fixed	770.00
	Total Unit Marketing Costs		1,045.00
Total Unit Costs			3,500.00

How will the company maximize its profit given with different business scenarios that the company might enter into?

. Analysis of Facts and Areas of Consideration

The analysis of the case would involve answering the following questions.

What is the break-even volume in units? In sales dollars?

Answer rating: 100% (QA)

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