The break even point of a company is $240 000. They sell their product at a...
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The break even point of a company is $240 000. They sell their product at a markup of 30% and have variable expenses of 9% of sales. They currently make a profit of $10 500. They plan on reducing their variable costs by 12% of sales by increasing fixed costs. If sales remain exactly as at the moment and they want to make a profit of $30 000, what is the maximum that they can increase the fixed cost? The break even point of a company is $240 000. They sell their product at a markup of 30% and have variable expenses of 9% of sales. They currently make a profit of $10 500. They plan on reducing their variable costs by 12% of sales by increasing fixed costs. If sales remain exactly as at the moment and they want to make a profit of $30 000, what is the maximum that they can increase the fixed cost?
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