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Total Fixed Costs Rent- 10,250,000 Supervisor Salaries- 8,500,000 Office Salaries- 6,000,000 Equipment Depreciation- 5,350,000 Property Taxes- 5,000,000 Variable Costs Per Unit Battery -10 Camera -45
Total Fixed Costs Rent- 10,250,000 Supervisor Salaries- 8,500,000 Office Salaries- 6,000,000 Equipment Depreciation- 5,350,000 Property Taxes- 5,000,000 Variable Costs Per Unit Battery -10 Camera -45 Internal Components-90 Receiver -35 Screen -95 Speaker-25 Sale Price Per Unit 1. Compute break-even point in units. Numerator: Denominator: 2. Compute the units of product that must be sold to earn income of $9,000,000. Numerator: I Break-Even Units Break-even units Denominator: Units to Achieve Target Units to achieve target 3. Compute the dollar value of sales that must be sold to earn income of $9,000,000. Numerator: I Denominator: Dollar Value of Sales Dollar value of sales
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