Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm struggling with this question The company PeasItems manufactures some products with an average sales price of 25/unit, with fixed annual costs of 11I 0,000.

I'm struggling with this question

The company PeasItems manufactures some products with an average sales price of 25/unit, with fixed annual costs of 11I 0,000. The average unit variable costs are 5.

a) At what volume of production will the threshold of profitability be reached?

b) Assuming that annual sales are estimated at 20,000 units, being the distribution evenly over a year, on what date will the break-even point be reached?

c) What would be the sales value or turnover corresponding to the threshold of profitability?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Institutions Management A Risk Management Approach

Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders

8th edition

978-0078034800, 78034809, 978-0071051590

More Books

Students also viewed these Finance questions