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Weston Co has fixed costs of $250,000 and sells its units for $65, and has variable costs of $35/unit. a. Compute the break-even point. b.
Weston Co has fixed costs of $250,000 and sells its units for $65, and has variable costs of $35/unit. a. Compute the break-even point. b. Mr. Weston comes up with a plan to cut fixed costs to $190,000. However, more labor will now be required, which will increase variable costs per unit to $40. The sale price will remain at $65. What is the new break-even point? c. Under the new plan, what is likely to happen to profitability at very high volume levels (compared to the old plan)
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