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Question 6: Total production costs of prior periods for a company are listed as follows. Assume that the same cost behavior patterns can be extended
Question 6: Total production costs of prior periods for a company are listed as follows. Assume that the same cost behavior patterns can be extended linearly over the range of 3,000 to 35,000 units and that the cost driver for each cost is the number of units produced. The company is concerned about its current operating performance that is summarized as follows: Sales ($12.50 per unit) $300,000 Variable costs 180,000 Net operating loss (40,000) based on example 1- target price to achieve BEP? 2-target total fixed cost to achieve BEP? 3-target variable cost per unit to achieve BEP? 4-Assume decrease fixed cost 10% and un change price compute variable cost per unit to achieve BEP
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