Question
Otto Enterprises manufactures only one product, a robot vacuum cleaner. The company has the capacity to make 150,000 vacuum cleaners per year and estimates the
Otto Enterprises manufactures only one product, a robot vacuum cleaner.
The company has the capacity to make 150,000 vacuum cleaners per year and estimates the following cost data for the coming year:
| Variable cost per unit | 70 |
| Total fixed costs | 870,000 |
Question
What price will Otto have to charge per sailboat in order to break even if it sells 150,000 vacuum cleaners for the year?
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
