The automotive supply company has a small plant that produces a speedometer exclusively. Its annual fixed cost is $30,000, and its variable cost is $10 per unit. it can sell a speedometer for $25.

a) How many speedometers must the company sell to break even?

b) What is the break-even revenue?

c) The company sold 3,000 units last year. What was its profit?

d) Next year's fixed cost are expected to rise to $37,500. What will be the break-even quantity?

e) if the company will sell the number of units obtained in part "d" and wants to maintain the same profit as last year, what will its new price have to be?

Answer rating: 100% (QA)

a Break Even Point Fixed Cost Sellint price Variable cost Where as Fixed Cost 3000000 Selling price ... View the full answer