Selling price	$200 per unit
Variable manufacturing costs	$130 per unit
Other variable costs	$20 per unit
Fixed manufacturing costs	$500,000
Other fixed costs	$200,000

The following is information about QRS limited, a manufacturer of bookcases:

1.What is the break-even point (in units) of bookcases?

2. How many bookcases must QRS sell to achieve a target profit of $ 300,000?

3. If QRS limited can decrease fixed manufacturing costs by $50,000 with an upgrade in raw material

Quality that will cost QRS an additional $10 per unit, would you recommend the change?

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