Maurice Tutor

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Category > Management Posted 17 Oct 2017 My Price 4.00

Footwear Inc.

(Break-even point and operating leverage) Footwear Inc. manufactures a complete line of men’s and women’s dress shoes for independent merchants. The average selling price of its finished product is $85 per pair. The variable cost for this same pair of shoes is $58. Footwear Inc. incurs fixed costs of $170,000 per year.

a. What is the break-even point in pairs of shoes sold for the company?

b. What is the dollar sales volume the firm must achieve to reach the break-even point?

c. What would be the firm’s profit or loss at the following units of production sold: 7,000 pairs of shoes? 9,000 pairs of shoes? 15,000 pairs of shoes?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Oct 2017 07:10 PM My Price 4.00

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