Question 4 (2.5 points)

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Use the following information to answer Questions 4 & 5

Projected cost information for a new product is as follows:

Variable manufacturing costs:	$8 per unit
Variable selling costs:	$3 per unit
Fixed manufacturing costs:	$25,000
Fixed selling costs:	$45,000

The product is to be sold at $18 per unit Determine the break-even point for this product (in sales $)?

Question 4 options:

	$8,750
	$45,000
	$180,000
	$157,500

Question 5 (2.5 points)

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Use the following information to answer Questions 4 & 5

Variable manufacturing costs:	$8 per unit
Variable selling costs:	$3 per unit
Fixed manufacturing costs:	$25,000
Fixed selling costs:	$45,000

The product is to be sold at $18 per unit What price would the company have to sell this product for if they wish to sell 11,000 units and realize a profit of $40,000?

Question 5 options:

	$21
	$18
	$5
	$22