Question: . A company making shirts is evaluating whether it is currently operating at a profit or at a loss. The company is producing 32,000 shirts.
. A company making shirts is evaluating whether it is currently operating at a profit or at a loss. The company is producing 32,000 shirts. The shirts are selling for $ 35.00 per unit; and the fixed cost is $ 500,000. In addition, the variable cost per unit is $ 25. Based on this information, which of the following statements is correct?
- The breakeven volume is 42,000 units; and the company is operating at a profit.
- The breakeven volume is 42,000 units; and the company is operating at a loss.
- The breakeven volume is 50,000 units; and the company is operating at a profit
- The breakeven volume is 65,000 units; and the company is operating at a profit
- None of the above
- We know that in Week 1, there are 20 ABCs in stock (i.e., 20 units of product ABC as on-hand inventory). We also know that there are scheduled receipts planned for week 3 and week 4 of 120 ABCs in each of these weeks. We also know that this product ABC has a lead time of 1 week. When and how large of an order should be placed (i.e., planned order release) to meet the gross requirement of 340 ABCs in week 5? Note: There are no other Gross Requirements in the other weeks.
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- Week 4, 80 units of ABC
- Week 4, 60 units of ABC
- Week 3, 88 units of ABC
- Week 4, 40 units of ABC
- Week 4, 88 units of ABC
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