Cambridge, Inc., is considering the introduction of a new calculator with the following price and cost characteristics:
Question:
Sales price . . . . . . . . . . . . . $ 18 each
Variable costs . . . . . . . . . . . 10 each
Fixed costs . . . . . . . . . . . . . 20,000 per month
Required
a. What number must Cambridge sell per month to break even?
b. What number must Cambridge sell to make an operating profit of $16,000 for the month?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Question Posted: