Perform a break-even analysis for the following scenario. Assume you sell toys. You have annual rent costs
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Question:
Perform a break-even analysis for the following scenario. Assume you sell toys. You have annual rent costs of $8,800. Your manufacturing and shipping of each toy cost $2. You sell each toy for $12.
Please answer four questions according to the given information above:
a. List and calculate the three financial elements of break-even analysis in this scenario.
b. What is your break-even point?
c. If you sell 2000 toys, how much is your net profit?
d. If you have to pay sales tax (suppose sales tax is 10% of sales revenue), so then what is your new break-even point?
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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