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soluciones cap 5-1

# soluciones cap 5-1 - Problems 1 Gateway Appliance toasters...

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Problems 1. Gateway Appliance toasters sell for \$20 per unit, and the variable cost to produce them is \$15. Gateway estimates that the fixed costs are \$80,000. a . Compute the break-even point in units. b . Fill in the table below (in dollars) to illustrate the break-even point has been achieved. Sales ............................... ___________ _ – Fixed costs ................... ___________ _ – Total variable costs ...... ___________ _ Net profit (loss) .............. ___________ _ 5-1. Solution: Gateway Appliance a. b. Sales \$320,000 (16,000 units × \$20) –Fixed costs \$ 80,000 –Total variable costs 240,000 (16,000 units × \$15) Net profit (loss) \$ 0

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2. Hazardous Toys Company produces boomerangs that sell for \$8 each and have a variable cost of \$7.50. Fixed costs are \$15,000. a . Compute the break-even point in units. b . Find the sales (in units) needed to earn a profit of \$25,000. 5-2. Solution: The Hazardous Toys Company a. b.
2. Hazardous Toys Company produces boomerangs that sell for \$8 each and have a variable cost of \$7.50. Fixed costs are \$15,000. a . Compute the break-even point in units. b . Find the sales (in units) needed to earn a profit of \$25,000.

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