Question
Soon to be famous, Texas Smokers, a locally owned business and manufacture of barbeque smokers wants to calculate its breakeven point for its business. Its
Soon to be famous, Texas Smokers, a locally owned business and manufacture of barbeque smokers wants to calculate its breakeven point for its business. Its Classic smoker sells for $335 with a unit variable cost of $235. The fixed cost is $57,000.
- What is the unit contribution margin ($)?
-What is the breakeven volume?
-What is the breakeven revenue?
-If 700 units built, what is the profit?
- If the price is raised by $50, what is the new breakeven volume?
- If the variable cost per unit is raised by $25, what is the new breakeven volume? Use the original selling price.
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