The Evergreen Company is considering producing a new product. The expected total fixed costs of the...

 

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The Evergreen Company is considering producing a new product. The expected total fixed costs of the new product are BD 31.500 and the average variable cost is BD 190. a. If the selling price is BD 260 per unit, how many units of this product need to be produced and sold to breakeven? ECC b. Show the breakeven point graphically. MICS LEARNING CENTER c. If the selling price is BD 225 the company expects to sell 1200 units. Calculate the profit or loss at this price. The Evergreen Company is considering producing a new product. The expected total fixed costs of the new product are BD 31.500 and the average variable cost is BD 190. a. If the selling price is BD 260 per unit, how many units of this product need to be produced and sold to breakeven? ECC b. Show the breakeven point graphically. MICS LEARNING CENTER c. If the selling price is BD 225 the company expects to sell 1200 units. Calculate the profit or loss at this price.

Answer rating: 100% (QA)

SOLUTION a To calculate the breakeven point we need to find the number of units that need to be prod... View the full answer