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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- Summer '18
- United Snack Company
