A small manufacturing produces certain product at a labor cost of $ 10.00 and material cost of $15 per unit. The fixed charges on the business are $10,000 a month, and variable costs businesse are $10,000 a month, and variable costs besides costs of materials and labor are $8.00 per unit. The products are sold wholesale at $63.00 each. 1) what is the breakeven sales volume of the company? 2) If for every 10 units produced comes out defective and has to be rejected with only full recovery of materials, what should be the break-even point sales volume?

A small manufacturing produces certain product at a labor cost of $ 10.00 and material cost of $15 per unit. The fixed charges on the business are $10,000 a month, and variable costs businesse are $10,000 a month, and variable costs besides costs of materials and labor are $8.00 per unit. The products are sold wholesale at $63.00 each. 1) what is the breakeven sales volume of the company? 2) If for every 10 units produced comes out defective and has to be rejected with only full recovery of materials, what should be the break-even point sales volume?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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