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Hill Company manufactures and sells a product called Beauty. Using regression analysis, and one-year monthly data, company has determined the behavior of manufacturing, selling,
Hill Company manufactures and sells a product called "Beauty". Using regression analysis, and one-year monthly data, company has determined the behavior of manufacturing, selling, and administrative costs as follows: Total Monthly Fixed Variable per Costs Unit Manufacturing $270,000 $3.00 Selling $80,000 $0.80 Administrative $100,000 S0.20 Current selling price per unit of Beauty is $10. The production capacity is up to 200,000 units per month. Answer the following independent questions. Currently, company is manufacturing and selling 100,000 units of Beauty. How much (in percentage) sales of company can drop before losses begin to incur? Example of Answer: 12% Round. No Decimal point, space, or comma.
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