HW 1 BEP Problem 1 Fixed Time Period IENG 301 Spring 2018
Fixed costs = $ 8,000
Variable cost = $10/unit
Semivariable cost = $5/unit + $900
Required Return = $1,500
Tax rate = .40
Revenue = $20/unit
Time = 100 hours
Total Production = 2,000 units
Find the following four break-even points in number of units:
Shutdown point:
Break-even at costs:
Break-even at required return:
Break-even at required return after taxes:
Find the net profit after taxes for production level of 2,000 units and 100 hours in dollars:
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