Break$-$Even Analysis

Attempt all questions in this assignment $(20$ marks$)$

Jina's small business has the capacity to make and sell $200$ bags per month. Each bag is sold

for $$100.$ The fixed costs are $$7000$ and the variable cost per bag is $$30.$

a$)$ Draw a break$-$even chart showing the total revenue, total costs, and fixed costs lines.

b$)$ Determine the break$-$even point in volume and sales dollars.

c$)$ Calculate the break$-$even as a percent of capacity.