Answered step by step
Verified Expert Solution
Question
1 Approved Answer
10) Flying Wings Inc. makes little plastic planes (that fly electronically) and sell them for $300 each online. The costs associated with the business include
10) Flying Wings Inc. makes little plastic planes (that fly electronically) and sell them for $300 each online. The costs associated with the business include $136 in variable costs (material, parts, and labour) and Fixed Costs of $98,400 (rent and other overhead). Determine: (4 marks)
a. the number of boats needed to be sold per month to breakeven.
b. the profit if the sell 1,700 planes (everything else stays the same)
c. the number of ships that must be sold to make a profit of $213,200.
d. the maximum amount of Fixed Costs (FC) that can be incurred to breakeven if they sell exactly 500 planes? (SP and VC stary the same)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started