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(Break-even point and operating leverage) Rockstar, Inc. manufactures a complete line of men's and women's casual shoes for independent merchants. The average selling price of
(Break-even point and operating leverage) Rockstar, Inc. manufactures a complete line of men's and women's casual shoes for independent merchants. The average selling price of its finished product is $85 per pair. The variable cost for this same pair of shoes is $50. Footwear Inc. incurs fixed costs of $170,000 per year.
(Break-even point and operating leverage) Rockstar, Inc. manufactures a complete line of men's and women's casual shoes for independent merchants. The average selling price of its finished product is $85 per pair. The variable cost for this same pair of shoes is $50. Footwoar Inc. incurs fixed cosis of $170,000 per yoar 3. What is the break-evern point in pairs of shoes sold for the compamy? b. What is the dollar sales volume the firm must achiove to reach the break-even point? c. What would be the firm's operating profit or loss (that is, net operating income) at the following units of production sold: 5.000 pairs of shoes? 12 , 000 pairs of shoes? 15,000 pairs of shoes? a. What is the break-even point in pairs of shoes sold for the company? units (Round to the nearest whole number.) a. What is the break-even point in pairs of shoes sold for the company?
b. What is the dollar sales volume the firm must achieve to reach the break-even point? c. What would be the firm's operating profit or loss (that is, net operating income) at the following units of production sold: 5,000 pairs of shoes? 12,000 pairs of shoes? 15,000 pairs of shoes?
a. What is the break-even point in pairs of shoes sold for the company? units (Round to the nearest whole number.)
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