Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Balance, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics: Sales price $ 1.00 per unit Variable
Balance, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics:
Sales price | $ | 1.00 | per unit |
Variable costs | $ | 0.20 | per unit |
Fixed costs | $ | 400,000 | per month |
Required: |
(a) | What number must Balance sell per month to break even? (Round your answer to the nearest whole number.) |
Number to be sold | units |
(b) | What number must Balance sell per month to make an operating profit of $100,000? (Round your answer to the nearest whole number.) |
Number to be sold | units |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started