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JP - All work must be shown for full credit. 3. How many units must Smith Company sell to breakeven if the selling price per
JP - All work must be shown for full credit. 3. How many units must Smith Company sell to breakeven if the selling price per unit is $505.00, the variable costs are $274.50 per unit for manufacturing cost and $85.50 per unit for commissions, and fixed costs are $787,350 ? (5 points) What is the breakeven point in total dollars of sales? (3 points) 4. (a) Find the targeted number of sales in cars for Really Honest Motors if the variable cost per car is $17,375, the selling price per car is $27,050 and the fixed costs are $402,200 and the company wishes to make $120,250 in profit. Work must be shown for credit. (5 points) (b) If variable costs increase TO $17,410 but the FC decrease TO $381,030, (i) will Really Honest Motors have to sell more, less or the same number of cars to achieve the same $120,250 profit (1 point) (ii) How many cars do they now need to sell? Show your work to prove your decision. ( 3 points)
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