An electronics manufacturer sells an electronic gadget for $155 per unit. The variable costs are $65 per unit and the fixed costs are $7200 per period. The production capacity is 250 units per period.

a. Draw a detailed break-even chart showing the fixed costs line, total costs line, total revenue line, break-even point, and profit and loss areas.

b. Determine the break-even volume and break-even revenue, and compute the break-even as a percent of the production capacity.

c. What was the amount of profit or loss if 150 gadgets were sold in a period?

d. What is the maximum profit that can be expected in a period?

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