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1. PC-Build, Inc. has the following fixed and variable costs and revenue for the first year of its business. Fixed Costs Item:s Office Inventory Advertising
1. PC-Build, Inc. has the following fixed and variable costs and revenue for the first year of its business. Fixed Costs Item:s Office Inventory Advertising Wages Phone Equipment Insurance Software Video Printing Cost (S) 6,000 15,000 50,000 80,000 3,000 4,300 8,000 8,700 5,500 4,500 2,700 Other The product has revenue of $920 per unit and variable cost of $550/unit. Using the data given above: a) Draw the breakeven chart and comment on the results from the breakeven analysis. b) Determine the breakeven quantity per year. c Calculate the annual profit if i) 2,000 units are sold and i) 3,600 units are sold. d) Calculate the number of units sold if the annual profit is: i) $800,000 and i) $1,200,000
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