Question

Simspon buys and sells ladies’ handbags. The average selling price is $500 per bag. Average variable...

Simspon buys and sells ladies’ handbags. The average selling price is $500 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $210 per bag. Simspon’s fixed costs equal $1,728,000 per year.

Do not enter dollar signs or commas in the input boxes.
Round all answers up to the nearest whole unit.

Calculate the number of units needed to:

Break-even: Answer
Earn $251,000 income: Answer
Earn income equal to 27% of total sales: Answer

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