Colin is the managerial accountant in charge of Company A, which
sells water bottles. He previously determined that the fixed costs of
Company A consist of property taxes, a lease, and executive salaries,
which add up to $100,000 per year. The variable cost associated with
producing one water bottle is $2 per unit. The water bottle is sold at a
premium price of $12.
a) Prepare B.E. chart. b) What volume per month is required in order to break even?
c) What profit would be realized on a monthly volume of 60,000
units?
d) What volume would be needed to obtain a profit of $ 20,000
per month?
e) What volume is required to provide revenue of $ 40,000 per
month?