RealityView makes augmented reality goggles at low cost. The company has a plant capacity of 200,000 units.
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RealityView makes augmented reality goggles at low cost. The company has a plant capacity of 200,000 units. Variable costs are $4,000,000 at 100% capacity. Fixed costs are $2,000,000 per year, but this is true only between 50,000 and 200,000 units.
- Prepare a cost-volume-profit chart using MS Excel for RealityView assuming it sells its product for $40 USD each. Indicate on the chart the relevant range, break-even point, and the areas of net income and losses
- Compute the break-even point in units
- Indicate on the spreadsheet how many units would have to be sold to earn $200,000 USD per year
Related Book For
Managerial Accounting An Introduction to Concepts Methods and Uses
ISBN: 978-0324639766
10th Edition
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
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