Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Score: 0 of 1 pt Problem 12-4 (similar to) 4 of 14 (9 complete) HW Score: 64 29%, 9 of 14 pts Question Help (Break-even

image text in transcribed
Score: 0 of 1 pt Problem 12-4 (similar to) 4 of 14 (9 complete) HW Score: 64 29%, 9 of 14 pts Question Help (Break-even point and operating leverage) Rockstar Inc, manufactures a complete line of men's and women's casual shoes for independent merchants. The average selling price of its finished product is $95 per pair. The variable cost for this same pair of shoes is 566 Footwear Inc. incurs food costs of $190.000 per year a. What is the break even point in pairs of shoes sold for the company? b. What is the dollar sales volume the firm must achieve to reach the break-even point? c. What would be the firm's operating profit or loss (that is, net operating income) at the following units of production sold 6,000 pairs of shoes? 9.000 pairs of shoes? 16.000 pairs of shoes? a. What is the break-even point in pairs of shoes sold for the company? 6333 units (Round to the nearest whole number) b. What is the dollar sales volume the firm must achieve to reach the break even point? 5 601635 (Round to the nearest cent.) c. What would be the firm's operating profit or loss before interest and taxes (EBIT) at 6,000 pairs of shoes sold? Enter a positive number for a profit and a negative number for a loss (Round to the nearest dollar) Enter your answer in the answer box and then click Check Answer 2 parts remaining

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

7. Explain the concept of layering in small business fi nance.

Answered: 1 week ago

Question

What does physics deal with?

Answered: 1 week ago

Question

Enumerate the qualities of a salesman.

Answered: 1 week ago

Question

WHAT IS HRM?

Answered: 1 week ago