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Describe the methods to separate mixed costs into fixed and variable costs. As a wellknown pullover brand, we sell pullovers 50.000 units a year for
Describe the methods to separate mixed costs into fixed and variable costs.
As a wellknown pullover brand, we sell pullovers 50.000 units a year for $130 and $96 cost per unit in general. A research on sales quantity showed that a 40% increase in production quantity will cause a $6 decrease in the unit cost.
- Compute the breakeven points in quantity and amount.
- Compute the quantity to sell to get a profit of $3.300.000.
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