Using break-even analysis}

A company has prepared the following statistics regarding its production and sales at different capacity levels.

1. At what point is break-even reached in sales dollars? In units?
2. If the company is operating at \(60 \%\) capacity, should it accept an offer from a customer to buy 10,000 units at \(\$ 3\) per unit?

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Capacity level Units 60% 60,000 80% 100% 80,000 100,000 Sales $240,000 $320,000 $400,000 Total costs: Variable $120,000 $160,000 $200,000 Fixed.... Total costs 150,000 150,000 $270,000 $310,000 Net profit (loss) $ (30,000) 0 $ 10,000 150,000 $350,000 $ 50,00