The Beta Manufacturing Company produces stepladders that sell for $27 each. The production capacity is limited to 48,000 units per year. Fixed costs are $50,000 and variable costs are $12 per item. Compute the break-even point in number of stepladders. How many items must be sold to provide a profit of $20,000 

What is allocation of fixed costs per stepladder at 75 percent capacity?

 A firm produces four models of tool sets. The fixed costs are $42,000 and the other data are as follows:
•Sales
• Model                   Qty            Price            Variable Cost              Revenue
• S                           4,000            $20                        6                        $80,000
• T                           5,000              32                         8                        $160,000
• U                           1,000             60                          20                      $60,000
• V                           2,000               50                       18                       $100,000
• Total                                                                                                     $400,000
Determine the break-even in dollars.
 What is the Margin of Safety if Sales =$75,000?

 The Clutch Engineering Company is proposing to locate a branch office in one of two West Coast locations, A or B. These two sites have quite different estimated operating  costs:
•                                                            A                      B
• Engineering labor cost               $15/hr.         $16/hr.
• Materials and supplies               2.40/hr.         $1.80/hr.
• (tied to engineering hours)
• Variable overhead                       5.50/hr.           4.40/hr.
• Total annual fixed cost               $150,000         $190,000
• Price to customers.                          $30                 $30
• Consider the hourly costs to be variable costs.
 a. Compute the break-even for both locations.
b. At what level of output (number of hours) are you in- different to the location?