The DeWayne Company sells binoculars
for $140 per unit. The variable cost is $100 per unit while the
fixed costs
are $1,200,000.
Compute:
- The anticipated break-even sales (units) for binoculars.
- The sales (units) for binoculars required to realize target
operating income of $400,000.
- Determine the probable operating income (loss) if sales total
32,000 units.
- If selling price goes up to $150 per unit while all costs
remain the same, what is the new break-even point?