A manufacturer specializes in the production and sales of scientific calculators. Each scientific calculator is sold $45 and has a variable cost per scientific calculator of $25. The manufacturer is just at the breakeven point with current annual sales of 600,000 scientific calculators. The manufacturer has set a plan that supports in dropping the variable cost per scientific calculator by $8. Assume that his current annual sales will remain constant, with the new reduction of the variable cost per scientific calculator.

12) What is the extra amount of money that may allocated to fixed costs while still breaking even? *

6 points

$12,000,000

$16,800,000

$21,600,000

$4,800,000

13) How many scientific calculators should be produced and sold if the manufacturer targets and operating income of $140,000? *

6 points

605,000 scientific calculators

776,429 scientific calculators

847,000 scientific calculators

433,571 scientific calculators