Below is the Cutlery company information.

Maximum sales according to installed capacity $6,000,000 Current sales $4,750,000 Unit sale price $100 Unit variable costs $65 Total fixed costs $1,750,000

You are asked to determine:

(a) Break-even point in units

(b) Break-even point in $

(c) Current profit level

(d) Maximum profit level given the installed capacity

(e) If the company reduces its fixed costs by $375,000, what would the new breakeven point be in $? Calculate.

 

 

Answer rating: 100% (QA)

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