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Part 1. Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating and it is very popular.
Part 1. Gay and Joy developed a neat Bento box for children. The shape of the containers encourages healthy eating and it is very popular. They have been paying another company to manufacture the boxes for them but are interested in manufacturing the boxes themselves. They've developed the following cost estimates:
Sales (100,000 units) | $ 1,000,000 | ||
Costs: | Fixed | Variable | |
Raw Materials | $ 0 | $ 300,000 | |
Direct Labor | 0 | 200,000 | |
Factory Costs | 100,000 | 150,000 | |
Selling and Administrative Costs | 110,000 | 50,000 | |
Total Costs | $ 210,000 | $ 700,000 | |
Operating Income | $ 90,000 |
- How many units will Gay and Joy need to sell to breakeven?
Provide a clear, properly formatted analysis. By this I mean to show your formulas or show the analysis that you prepared to provide answers.
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