Zinc Energy Resources Co., a new division of a major battery manufacturing company, recently patented a new battery that uses zinc-air technology. The unit costs for the zinc batter are $8 for housing, materials are $6, direct labor is $6 per unit. Retooling the existing factory facilities to manufacture the batteries amount to an additional $1 million in equipment cost. Annual fixed costs include sales marketing and advertising expenses of $1 million; general and administrative expenses of $1 million and other fixed cost totaling $2 million.

If the price for the new batter was set at $35, what would the break even point be?

Answer rating: 100% (QA)

Sales per unit 35 Variable cost 20 per unit Contribution pe... View the full answer