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Cost-Volume-Profit Analysis at Amazon Values: Item Amount Selling Price $140 Variable Cost $100 Fixed Costs $8,000,000 Requirements: Calculate the break-even point in units. Determine the

Cost-Volume-Profit Analysis at Amazon

Values:

Item

Amount

Selling Price

$140

Variable Cost

$100

Fixed Costs

$8,000,000

Requirements:

  1. Calculate the break-even point in units.
  2. Determine the sales volume needed to achieve a profit of $2,000,000.
  3. Analyze the impact of an increase in variable costs on the break-even point.
  4. Discuss strategies to reduce the break-even point.

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