Question
ABC Technologies, Inc manufactures baseball bats. The bats currently sell for $ 65.00. The variable costs are $ 42.00 to manufacture and the fixed costs
ABC Technologies, Inc manufactures baseball bats. The bats currently sell for $ 65.00. The variable costs are $ 42.00 to manufacture and the fixed costs are $ 90,000. Determine the following: a) Break even in units b) Break even in dollars c) If the company wishes to make $ 70,000 how many units must they sell. d) If the company were to raise the selling price by 10% and reduce variable costs by 5%, what would be the new breakeven. (Fixed costs remain at $ 90,000) e) The company spent an additional $ 14,000 for an extensive advertising campaign. If the advertising campaign resulted in additional sales of 570 units, was the campaign profitable? Note: I am expecting an actual dollar amount. Assume the original $ 65 selling price and $ 42.00 variable cost
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