Question

Required information A company that manufactures automatic blowdown control valves (for applications where boilers are operated unsupervised for 24 to 36 hours) has fixed cost of $140,000 per year and variable cost of $675 per valve. The company expects to sell 15,000 valves per year. Determine the selling price in order for the company to break even. The selling price for the company to break even is determined to be $ per unit.?

Required information

You work for Bellevue Window Products. While performing an analysis for a new window product, you found a report from last year that provided the following information regarding the manufacture of a similar product: annual production rate = 40,000 units; selling price = $66 per unit; fixed production cost = $260,000 per year; variable production cost = $1,720,000 per year; and variable selling expenses = $89,000 per year.

As a first-cut, you decide to use this information to estimate the breakeven production rate per year.

The breakeven production rate per year is estimated to be  units per year. ?

Answer 1