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A company has different output levels, and incurs different total production costs at each Level, as follows. Output (Units) Total Cost ($) 6000 44,700 8000
A company has different output levels, and incurs different total production costs at each
Level, as follows.
Output (Units)
Total Cost ($)
6000
44,700
8000
57,700
Required:
- If the selling price is $8/unit at all levels, what is the B.E.P.?
- What is the breakeven revenue?
- Calculate the margin of safety if the budgeted sales being 5,000 units.
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