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Break-Even Point Assignment | Homework For You

Author:
January 31st, 2020

A plant operation has fixed costs of $2,000,000 per year, and its output capacity is 100,000 electrical appliances per year. The variable cost is $40 per unit, and the product sells for $90 per unit.Homework For You

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a. What is the break-even point in terms of units?

b. What is the break-even point in terms of dollars?

c. How much capacity has been used?

d. If the variable cost is increased to $55, what is the percent reduction (or increase) to the profit? What is the break-even point in units now? Get Finance homework help today

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