Question: 5. Your companys fixed operating costs are $500,000, its variable costs are $2.50 per unit, and the product sales price is $5.25. What is the

5. Your companys fixed operating costs are $500,000, its variable costs are $2.50 per unit, and the product sales price is $5.25. What is the companys break-even point?

4. The Candy Company sells boxes of chocolate for $19, its fixed costs are $210,000, and the variable costs are $9 for each box of chocolates.

a) What is the companys gain or loss if it sells 10,000 boxes of chocolate? At 25,000 boxes?

b) What is the company's break-even point?

c) What would happen to the break-even point if the sales price was raised to $25?

d) What would happen to the break-even point if the sales price was raised to $25 but the variable costs increased to $13 per box?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!