Question
Cantor Products sells a product for $83. Variable costs per unit are $46, and monthly fixed costs are $125,800. a. What is the break-even point
Cantor Products sells a product for $83. Variable costs per unit are $46, and monthly fixed costs are $125,800. a. What is the break-even point in units? b. What unit sales would be required to earn a target profit of $321,900? c. Assume they achieve the level of sales required in part b, what is the degree of operating leverage? (Round your answer to 3 decimal places.)
d. If sales decrease by 30% from that level, by what percentage will profits decrease? (Do not round intermediate calculation. Round your answer to 2 decimal places.)
c. What sales revenue is needed to achieve a $332,250 per month profit?
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