Because of EDC's massive expansion plan, their fixed costs are expected to skyrocket in the next year due to hiring, long-term asset purchases, and so on. The plant manager expects fixed costs to increase to $800,000. They sell desks for $700, and the variable costs for each are $45. Based on this information, your manager asks you to determine the following amounts:

1. the break-even point in units,
2. the break-even point in sales dollars, and
3. the number of units needed to be sold for a profit of $200,000.

Answer rating: 100% (QA)

Solution Certainly lets go through the calculations 1 Breakeven point in units Breakeven point ... View the full answer