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Problem $19-04$

The manufacturer of a product that has a variable cost of $$2\mathrm{.}30$ per unit and total fixed cost of $$118,000$ wants to determine the level of output

avoid losses.

a$.$ What level of sales is necessary to break$-$even if the product is sold for $$4\mathrm{.}50?$ Round your answer to the nearest whole number.

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What will be the manufacturer's profit or loss on the sales of $95,000$ units? Round your answer to the nearest dollar.

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b$.$ If fixed costs rise to $$166,000,$ what is the new level of sales necessary to break$-$even? Round your answer to the nearest whole number.

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c$.$ If variable costs decline to $$2\mathrm{.}05$ per unit, what is the new level of sales necessary to break$-$even? Round your answer to the nearest whole number.

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d$.$ If fixed costs were to increase to $$166,000,$ while variable costs declined to $$2\mathrm{.}05$ per unit, what is the new breale

to the nearest whole number.

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e$.$ If a major proportion of fixed costs were noncash $($depreciation$),$ would failure to achieve the break$-$even level of sales imply that the firm cannot pay its

current obligations as they come due? Suppose $$98,000$ of the above fixed costs of $$118,000$ were depreciation expense. What level of sales would be the

cash break$-$even level of sales? Use the initial variable cost in your calculations. Round your answer to the nearest whole number.

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