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The following relationships exist in a manufacturing company producing one product. Fixed Costs per year Variable Cost per unit Revenue per unit $800,000 $120 $200
The following relationships exist in a manufacturing company producing one product. Fixed Costs per year Variable Cost per unit Revenue per unit $800,000 $120 $200 Answer each question with a sentence supported by the appropriate calculations. A) What is the break-even quantity (in units)? B) What are total revenues at the break-even quantity? 5 6 17 C) What are total costs at the break-even quantity? 18 D) What quantity would be required for a profit of $100,000? 19 20 E) What profit (loss) would there be for a quantity of 9,500 units? 21 22 F) What profit (loss) would there be for a quantity of 14,500 units? 23 24 G) Draw a graph to represent the breakeven relationship relative to the above information. 25 26 27
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