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Please solve showing work, with explanation that is as clear as possible! thank you 9. A product sells for $300 per unit, and its variable
Please solve showing work, with explanation that is as clear as possible! thank you
9. A product sells for $300 per unit, and its variable costs are 65% of sales. The fixed costs are $420,000. What is the break-even point in sales dollars? a) $2,100 $6,000 $4,000 $420,000 $1,200,000 None of the above answers is correct Garrison Company plans to sell chandeliers for $82/unit. Each chandelier requires: 1 lb of metal at $10/lb 2 hours of labor at $11/hour Garrison pays its workers a total of $500,000 per year, which is not dependent on produced units, and rent on the building Garrison occupies is $130,000 per year. (a) Calculate the break-even point. (b) Calculate the break-even revenue. (c) What dollar amount of sales would be necessary to achieve income of $120,000Step by Step Solution
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