A central heating installation company has a fixed annual cost of $120,000. The variable costs are $1,000
Question:
A central heating installation company has a fixed annual cost of $120,000. The variable costs are $1,000 per unit. The company charges $3,500 per unit installed.
a. For an annual volume of 57 units, determine the total cost, total revenue, and profit.
b. Determine the annual break-even volume for this company.
LO.1
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