Question
Marshall Printing makes door hangers (you know, the paper door hangers for advertising). Marshall charges $.20/doorhanger and estimates the variable cost to be $.18.doorhanger. Marshalls
Marshall Printing makes door hangers (you know, the paper door hangers for advertising). Marshall charges $.20/doorhanger and estimates the variable cost to be $.18.doorhanger. Marshalls total fixed costs are $2,160 per month (primarily rent and depreciation).
Part one: Please calculate the number of doorhangers Marshall must sell the breakeven.
Part two: What is Marshalls new Breakeven in units if variable costs increase to $.241/doorhanger?
Part three: What is Marshalls breakeven if variable costs are $.241 and Marshall would like a Target profit of $678?
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