The Excellent DVD Company sells DVDs for $62 each. Manufacturing cost is $22.70 per DVD; marketing costs are $7.75 per DVD; and royalty payments are 15% of the selling price. The fixed cost of preparing the DVDs is $227 300. Capacity is 20 000 DVDs.

a) Draw a detailed break-even chart. b) Compute the break-even point

(i) in units; (ii) in dollars; (iii) as a percent of capacity.

c) Determine the break-even point in units if fixed costs are increased by $3300 while manufacturing cost is reduced $1.65 per DVD.

d) Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.