Question
5. Your companys fixed operating costs are $500,000, its variable costs are $2.50 per unit, and the product sales price is $5.25. What is the
5. Your companys fixed operating costs are $500,000, its variable costs are $2.50 per unit, and the product sales price is $5.25. What is the companys break-even point?
4. The Candy Company sells boxes of chocolate for $19, its fixed costs are $210,000, and the variable costs are $9 for each box of chocolates.
a) What is the companys gain or loss if it sells 10,000 boxes of chocolate? At 25,000 boxes?
b) What is the company's break-even point?
c) What would happen to the break-even point if the sales price was raised to $25?
d) What would happen to the break-even point if the sales price was raised to $25 but the variable costs increased to $13 per box?
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