Question
Marketing department suposes that 17,500 units could be sold at $18 per unit, but the max capacity of the company is 6,250 units of the
Marketing department suposes that 17,500 units could be sold at $18 per unit, but the max capacity of the company is 6,250 units of the new product annually. The fixed expenses are expected at the level of $225,000 for the year. The variable expenses of the new product are $8 per unit. Required: a. Calculate breakeven point. b. Calculate the profit if the company will produce and sell max capacity at price USD 18. e. The management want the new product earn a profit of at least $62,5100 in the next fiscal year. Calculate price per unit is the company sells out max capacity produced.
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