Question
Steven's firm has the capacity to produce a maximum of 6,800 items per annum. The fixed costs are $335,000 per annum, variable costs are $4
Steven's firm has the capacity to produce a maximum of 6,800 items per annum. The fixed costs are $335,000 per annum, variable costs are $4 per item, and she sells each item for $80.
a. What is the break-even volume? Round up to the next whole number
b. What is the break-even revenue? Round to the nearest cent
c. What is break-even as a percent of capacity per annum? % Round to two decimal places
d. What is the profit or loss made if 56 items are sold in a year?
Express the answer as a positive number for-profit and a negative number for loss rounded to the nearest cent
e. What is the maximum profit per year that he can expect from his firm? Round to the nearest cent
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