Answered step by step
Verified Expert Solution
Question
1 Approved Answer
value: 10.00 points Toys-4-U manufactures a toy that it sells for $25 each. The variable cost per toy is S10 and the fixed costs for
value: 10.00 points Toys-4-U manufactures a toy that it sells for $25 each. The variable cost per toy is S10 and the fixed costs for this product line are $105,000 per year. They estimate they can produce 10,000 toys per production period. a. What is the break-even point in units? Break-even point toys per year b. What is the break-even sales revenue? Break-even sales revenue per year c. What is the break-even volume as a percent of capacity? (Round your answer to 1 decimal place.) Break-even volume d. What would their net income be if they sold 9,000 toys? Net incomes e. What level of output is required to have a net income of $12,000? Level of output toys per year
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started