Question

The DeWayne Company sells binoculars for $140 per unit. The variable cost is $100 per unit...

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:

  1. The anticipated break-even sales (units) for binoculars.
  2. The sales (units) for binoculars required to realize target operating income of $400,000.
  3. Determine the probable operating income (loss) if sales total 32,000 units.
  4. If selling price goes up to $150 per unit while all costs remain the same, what is the new break-even point?

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