Question
The Mandy Corporation sells widgets directly to retailers, and has the following cost structure: fixed costs:Rent and taxes$16,000 Depreciation of equipment$5,000 Quality control program$20,000 variable
The Mandy Corporation sells widgets directly to retailers, and has the following cost structure:
fixed costs:Rent and taxes$16,000
Depreciation of equipment$5,000
Quality control program$20,000
variable costs: Direct material:$30/unit
Direct labor:15 hours/unit @ $9/hour
Retailer markup is 50% of the selling price
What is the breakeven point if the retail price is $420 (show work).
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Services Marketing Concepts, Strategies, & Cases
Authors: Douglas Hoffman, john Bateson
4th edition
1439039399, 978-1439039397
