A) Mehta & Associates, a producer of cable wires, wants you to complete several calculations based...

 

Transcribed Image Text:

A) Mehta & Associates, a producer of cable wires, wants you to complete several calculations based on the information given: Selling Price/Unit = $8.75 Variable Cost/Unit = $4.50 Total Fixed Costs = $39,500 Required to calculate the following: a) Break Even point in units b) Sales Volume necessary to produce a net income of $25,000 c) Total Units required to be sold to earn a Net Income of $20,500 B) Based on the results above, how would you interpret the numbers? Explain the advantages of using this analysis and how it supports the Business in making important decisions. (600 words) A) Mehta & Associates, a producer of cable wires, wants you to complete several calculations based on the information given: Selling Price/Unit = $8.75 Variable Cost/Unit = $4.50 Total Fixed Costs = $39,500 Required to calculate the following: a) Break Even point in units b) Sales Volume necessary to produce a net income of $25,000 c) Total Units required to be sold to earn a Net Income of $20,500 B) Based on the results above, how would you interpret the numbers? Explain the advantages of using this analysis and how it supports the Business in making important decisions. (600 words)