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A machine manufacturer sells each machine for $6,200. The fixed costs are $284,950 per annum, variable costs are $1,850 per machine, and the production capacity
A machine manufacturer sells each machine for $6,200. The fixed costs are $284,950 per annum, variable costs are $1,850 per machine, and the production capacity is 72 machines in a year. a. What is the break-even volume? b. What is the break-even revenue? c. What is break-even as a percent of capacity per annum? d. What is the profit or loss made if 62 machines are sold in a year?
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