Scenario 3

The Hyundai Motor Company is a South Korean multinational automotive manufacturer headquartered in Seoul, which specializes in manufacturing automobiles, four-wheel drive vehicles, and motorcycles. The annual sale of the company is 20 vehicles; selling price of each vehicle is $50,000. One unit of direct material cost $40 and during the year company uses 6,250 units of direct material for production. Their variable overhead was $150,000. The company had 10 workers with a direct wage of $10,000 each per year. Fixed overhead was $200,000. Draw a breakeven chart and determine important points.