Question

Given the following information: Selling Price (per unit): $10,000 Variable Costs (per unit): $7,000 Fixed Costs:...

Given the following information:

Selling Price (per unit): $10,000

Variable Costs (per unit): $7,000

Fixed Costs: $200,000

Required

Each of these are separate situations:

  1. What is the break-even point in total sales in dollars?
  2. How many units need to be sold to make a profit of $20,000?
  3. How many units need to be sold to make a profit of $20,000 if fixed costs increase from $200,000 to $250,000?
  4. How many units would they need to sell if they wanted to double profit, if the current number of units sold is 200?
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