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Part 1. Company A makes one product, called alpha. They have fixed costs of $150,000. Each alpha sells for $9, and has $7 per unit
Part 1. Company A makes one product, called alpha. They have fixed costs of $150,000. Each alpha sells for $9, and has $7 per unit in variable costs to produce. Find the operating breakeven quantity for Company A.
Part 2. Using the information from problem 1 above, assume that Company As fixed costs increase to $180,000, and the variable costs increase to $7.50 per unit. Find the operating breakeven quantity for Company A.
Please show work so I can see how to get the answer. Thank you!
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