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6. ABC Itd. Estimates show that the variable cost of manufacturing a new product will be $60 per unit. Based on market research, the selling
6. ABC Itd. Estimates show that the variable cost of manufacturing a new product will be $60 per unit. Based on market research, the selling price of product is to be $120 per unit and variable selling price is expected to be $20 per unit. The fixed cost applicable to new product are estimated to be $2800 per period and capacity is 100 un its per period. For the above perform a break even analysis showing a) An algebraic statement of the revenue function a. b. the cost function b) computation of the break even point a. in units b. in sales dollars as a percent of capacity . 8 c) A detailed break even chart
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