Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Therapeutic Systems sells its products for $29 per unit. It has the following costs: Rent Factory labor Executives under contract Raw material $225,000 $ 12.00

image text in transcribedimage text in transcribed

Therapeutic Systems sells its products for $29 per unit. It has the following costs: Rent Factory labor Executives under contract Raw material $225,000 $ 12.00 per unit $492,100 $ 2.80 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $29, compute the break-even point. (Do not round intermediate calculations.) Break-even point units Air Purifier Inc. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are $2,550,000, but 20 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is $60. How many units does the firm need to sell to reach the cash break-even point? (Round your answer to the nearest whole number.) Cash break-even point units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Modern Financial Markets Prices, Yields, And Risk Analysis

Authors: Mark Griffiths, Drew Winters, David W Blackwell

1st Edition

0470000104, 9780470000106

More Books

Students also viewed these Finance questions