ABC Ltd. is a manufacturer of widgets. The company has fixed costs of $100,000 per year and
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ABC Ltd. is a manufacturer of widgets. The company has fixed costs of $100,000 per year and variable costs of $20 per widget. ABC Ltd. sells widgets for $50 each. In the current year, the company produced and sold 10,000 widgets.
a) Calculate the total cost, total revenue, and total profit of ABC Ltd. in the current year.
b) Calculate the break-even point in units and in dollars for ABC Ltd.
c) If ABC Ltd. wants to earn a profit of $50,000 in the current year, how many widgets does the company need to sell?
Related Book For
Management Accounting
ISBN: 9781760421144
7th Edition
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
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