Homework+File+3+Week+3 - Heaters are sold for $20 each. The...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Breakeven Questions 7 San Diego Cake Store manufactures the finest Red Velvet Cakes in the world. The Cakes are each sold for $45. Variable costs are 65% of Sales and Fixed Costs are $405,000. How many Red Velvet Cakes must San Diego Cake Store sell in order to break even? 8 ACME heating company expects to make $40,000 in earnngs after taxes (EAT) with Sales of $400,000.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Heaters are sold for $20 each. The Variable Cost per heater is $10 and ACME pays 35% taxes. 8.1 What are ACME's Fixed Costs expected to be next year? 8.2 Calculate ACME's Break even number of heaters in units and dollars....
View Full Document

This note was uploaded on 01/10/2012 for the course FINANCE 370 taught by Professor Jones during the Winter '08 term at University of Phoenix.

Ask a homework question - tutors are online