Question: problem a, b, c plz (Break-even point and operating loverage) Rockstar, Inc. manufactures a complete line of men's and women's casual shoes for independent merchants.

problem a, b, c plz
problem a, b, c plz (Break-even point and operating loverage) Rockstar, Inc.

(Break-even point and operating loverage) Rockstar, Inc. manufactures a complete line of men's and women's casual shoes for independent merchants. The averago selling price of its finished product is $85 per pair. The variable cost for this same pair of shoes is $65. Footwear Inc, incurs foed costs of $170,000 per year. a. What is the break-even point in pairs of shoes sold for the company b. What is the dollar sales volume the firm must achieve to reach the break-even point? c. What would be the firm's operating profit or loss (that is, net operating income) at the following units of production sold: 7,000 pairs of shoes? 12,000 pairs of shoes? 16,000 pairs of shoes? a. What is the break-even point in pairs of shoes sold for the company? units (Round to the nearest whole number.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!