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The Quiet Blow Company has a small plant that manufactures noise suppressors for leaf blowers. Its annual fixed costs are $3,000,000, and its variable costs
The Quiet Blow Company has a small plant that manufactures noise suppressors for leaf blowers. Its annual fixed costs are $3,000,000, and its variable costs are $9,000 per unit. It can sell a suppressor for $25,000.
- How many suppressors must the company sell to break even?
- What is the break-even revenue?
- The company sold 5,000 units last year. What was its profit?
- Due to a new lump-sum tax, next year's fixed costs are expected to rise to $3,700,500. What will be the break-even quantity?
- What is the total revenue if the company sells 25,000 units at the same price?
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