1. The Sherston Brick Company manufactures a standard stone block for the construction industry. The production capacity for the year is 100,000 standard blocks. The selling price per block is $1.60, variable costs are $0.60 per brick, and fixed costs are $60,000 per year. 

Calculate the break-even point and total revenue if the company breaks-even. Please show all calculations. 

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2. 2. A firm has fixed costs of $300,000 and produces a product with a selling price of $72.00 and a variable cost of $42.00 per unit. The maximum factory capacity is 20,000 units and plans to sell 15,000 units. Find the balance point. 
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4. Calculate the profit if the company produced and sold 20,000 and 15,000 units respectively . Please show all calculations.

Answer rating: 100% (QA)

Question 1 To calculate the breakeven point we need to find the number of units the company needs to sell in order to cover all its costs Selling pric... View the full answer