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please give me correct answer 2.The following information is available for Stan Lee Company regarding its manufacturing facilities: The company estimates the following costs for
please give me correct answer
2.The following information is available for Stan Lee Company regarding its manufacturing facilities: The company estimates the following costs for the upcoming fiscal year Direct Materials (per unit) $2.00 Direct Labor (per hour) $5.00 Variable Overhead (per direct labor hour) $4.00 Fixed Overhead $46,000 Selling and Administrative Expense $33,000 ($10,000 fixed) The company produced 50,000 units and sold 46,000 units during the year. Each product requires 2 hours of direct labor hours. The company sells each product for $25 per unit. Instructions: What is the break-even point (in sales dollars)? (2) If the Direct labor demands for a wage of $6.00 per hour, what is the new breakeven point in units? (3) Assume the company wants to earn a profit of $50,000. Can the company achieve their target if the production capacity is at 20,000 units (3) Why do companies need to figure out the break-even point? (2)Step by Step Solution
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