Question
Breakeven Analysis - Pt 1 Owen Lars operates a business that sells enhanced condensers to the water farmers on Tatooine. He buys basic condensers from
Breakeven Analysis - Pt 1 Owen Lars operates a business that sells enhanced condensers to the water farmers on Tatooine. He buys basic condensers from his supplier on Cloud City for $500 per condenser and sells them for $750 each after he has modified them to perform in the scorching heat of Tatooine. He pays $12,750 per month to rent his production facility and $2,000 per month for utilities. The work on modifying the condensers is done by a team of droids. He incurs monthly operating expenses of $4,000 per month to keep the droids functioning properly. How many condensers does Owen have to sell each year to break-even? Breakeven Analysis - Pt 2 If Owen wanted to make $8,000 per month in profit, how many additional condensers would he have to sell each year, i.e. a number of units over-and-above the breakeven level of sales?
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