Question
. Break-even and target profits. Analysis of the operations of Padillo Company shows the fixed costs to be $20 0,000 and the variable costs to
. Break-even and target profits. Analysis of the operations of Padillo Company shows the
fixed costs to be $20 0,000 and the variable costs to be $8 per unit. Selling price is $16 per
unit.
a. Derive the break-even point expressed in units.
b. How many units must the firm sell to earn a profit of $280,000?
c. What would profits be if revenue from sales were $2,000,000?
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College Accounting, Chapters 1- 15
Authors: James A. Heintz, Robert W. Parry
23rd Edition
0357391942, 9780357391945
