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Category > Accounting Posted 22 May 2017 My Price 9.00

How many signs must be sold to break even?

Hello I need some assistance with this question - I seem to be just getting myself confused

 

The company will sell 7000 signs. The signs are expected to sell for $75 and require variable costs of $25. The Sign of Things to Come has annual fixed costs of $300 000.

 

Required

a How many signs must be sold to break even?

b How many signs must be sold to earn a profit of $15 000?

c If 7000 signs are sold, how much profit will be earned?

d What would be the break-even point if the sales price decreased by 20 per cent? Round your answer to the nexthighest number.

e What would be the break-even point if variable costs per sign decreased by 40 per cent?

f What would be the break-even point if fixed costs increased by $50 000?

 

Many thanks

Answers

SuperTutor
(15)
Status NEW Posted 22 May 2017 01:05 AM My Price 9.00

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