Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Zawadi Otieno works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is
Zawadi Otieno works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $4.00 per package, and material is $5.00 per package. The selling price will be $12.50 per package. a. How much revenue do we need to take in before breaking even? Note: Round your answer to the nearest dollar amount. Break-even point $ 2,857 b. What is the break-even point in units? Note: Do not round Intermediate calculations. Roundup your answer to the next whole number. Break-even point 35,714 units
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