Module four Homework.docx - Module 4 Homework 2 The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez's autograph stamped on them

# Module four Homework.docx - Module 4 Homework 2 The...

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Module 4 Homework 2.The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat sells for \$35 and has a variable cost of \$22. There are \$97,500 in fixed costs involved in the production process.a. Compute the break-even point in units. b. Find the sales (in units) needed to earn a profit of \$262,500. 8.Air Purifier Inc. computes its break-even point strictly on the basis of cash expenditures related to fixed costs. Its total fixed costs are \$2,450,000, but 15 percent of this value is represented by depreciation. Its contribution margin (price minus variable cost) for each unit is \$40. How many units does the firm need to sell to reach the cash break-even point?

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