Question
Sartell Inc manufacturers FIN 306 widgets. I have a very labor-intensive process that uses many assets that are fully depreciated. My fixed costs are relatively
Sartell Inc manufacturers FIN 306 widgets. I have a very labor-intensive process that uses many assets that are fully depreciated. My fixed costs are relatively low (I run a small company) at $20,000 per year and my variable costs are $16 per unit. The sales price for my widgets is $28 per widget.
a.What is the Operating Breakeven Point in units?
b.What is our operating profit (or loss) if we manufacture & sell:
i.1,500 units per year
ii.3,000 units per year
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Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
22nd Edition
324401841, 978-0-324-6250, 0-324-62509-X, 978-0324401844
