1) If the unit variable cost for each computer is $350 and the manufacturer has fixed costs totaling $2 million, how many computers must this manufacturer sell to break even?
Breakeven= Total Fixed Cost / Contribution
Contribution = Selling price - Variable cost
Breakeven =$2,000,000 / ($800 -$ 350)
Breakeven = 4444.44 Units or 4445 Units
2) How many must it sell to realize a profit of $50 million?
Unit volume = (Fixed cost + Profit goal) / (Selling price - Variable cost)
Unit Volume = ($2,000,000 + $50,000,000 )/ ($800 - $350)
Unit Volume = 115555.5 Units or 115556 Units
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This is my assignment question. Submission last date is 24 August 2020, (11:55 PM). Can you help me please.
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