Question: I've started working at a warehouse which makes a single auto part, shocks. We sell this auto parts in box sets of 4 for $82.
I've started working at a warehouse which makes a single auto part, shocks. We sell this auto parts in box sets of 4 for $82. It costs us 3 dollars of variable product costs to make an additional spring. Of our selling price, it is estimated that 2 dollars relates to selling costs such as commission. These spring do not have a large cost to make an additional spring, but do require a lot of machinery. Our office admin costs are generally 60% variable.
| sales | 200,000 |
| COGS | 150,000 |
| GM | 50,000 |
| Op Costs | |
| Admin | 18,000 |
| Selling | 22,000 |
| NI | 10,000 |
What is the breakeven in units (not boxes) (rounded to the full unit)
a.
20
b.
10000
c.
8563
d.
200000
e.
17
f.
9282
g.
185632
h.
7200
i.
None of the above
j.
6
k.
14
Clear my choice
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