Question: Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $15,000 for this process, direct labor is
Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $15,000 for this process, direct labor is $4.00 per package, and material is $4.75 per package. The selling price will be $15.00 per package.
a. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.)
b. What is the break-even point in units?
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