Question
Deliver Me currently delivers packages for $9 each.The variable cost is $3 per package, and fixed costs are $75,000 per month. Compute the break-even point
Deliver Me currently delivers packages for $9 each.The variable cost is $3 per package, and fixed costs are $75,000 per month. Compute the break-even point and/or targeted income in both sales dollars and units under each of the following independent assumptions.
a. The costs and selling price are as given above: Breakeven in units =
units Breakeven in dollars = $
b. Fixed costs are decreased to $60,000. (Sales are still $9 each and variable costs are still $3 each) Breakeven in units =
units Breakeven in dollars = $
c. Deliver Me desires net income of $90,000.(Sales are still $9 each, variable costs are still $3 each, and Fixed costs are $75,000.) Breakeven in units =
units Breakeven in dollars = $
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