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A machine manufacturer sells each machine for $7,200. The fixed costs are $267,000 per annum, variable costs are $1,600 per machine, and the production capacity
A machine manufacturer sells each machine for $7,200. The fixed costs are $267,000 per annum, variable costs are $1,600 per machine, and the production capacity is 60 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 64 machines are sold in a year?
Round to the nearest cent to all answers
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