Question: Toler Company sells flags with team logos. Toler has fixed costs of$260,000 per year plus variable costs of $6.50 per flag. Each flag sells for
Toler Company sells flags with team logos. Toler has fixed costs of$260,000 per year plus variable costs of $6.50 per flag. Each flag sells for $13.00.
The company is considering an expansion that will increase fixed costs by 20% and variable costs by $1.30 per flag. Compute the new breakeven point in units and in dollars. Should Toler undertake the expansion? Give your reasoning. (Round your final answers up to the next whole number.)
Rearrange the formula you determined above and compute the required number of flags to break even under the expansion plan.
| Under the expansion plan, the breakeven point in units would be _____flags |
solve for the Breakeven point in units? I got 40000 But some how its in correct.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
