5. 8.5 A company that sells reverse-osmosis water purifiers has the following fixed and variable cost components

Question:

5. 8.5 A company that sells reverse-osmosis water purifiers has the following fixed and variable cost components for its product over a 1-year period. Determine the revenue per unit required to break even if the sales volume is estimated to be 5000 units. Table Summary: Table divided into two columns represents function value based on the computation results obtained. Column 1, fixed cost, in dollars, is further divided into two sub-groups representing the types of expenses and corresponding value, in dollars respectively. Column 2, variable costs, in dollars per unit, is further divided into two subgroups representing cost factors and corresponding value, in dollars per unit. Fixed Costs, $ Variable Costs, $ per Unit Administrative 10,000 Materials 5 Lease cost 20,000 Labor 3 Insurance 7,000 Indirect labor 5 Utilities 3,000 Other overhead 20 Taxes 10,000 Other operations 50,000

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Basics Of Engineering Economy

ISBN: 9781259683312

3rd Edition

Authors: Leland T. Blank, Anthony Tarquin

Question Posted: