Essay
Bill produces a miracle tool. His variable costs are $20 per unit and his fixed costs are $22 500. His break-even point is 30 000 units.
a. What is Bill's selling price per unit?
b. What is Bill's profit at 50 000 units of sales?
c. What would Bill's profits at 50 000 units of sales be if Bill were able to reduce his variable costs by $5 per unit?
Correct Answer:
Verified
a. 30 000 units = $22 500/contribution m...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q27: The _ describes how the business will
Q28: Example 2.2<br>The information below is used for
Q29: Barb's Best Pies sells a meat pie
Q30: Before making a pricing decision, one should
Q31: It is important that the financial plan
Q33: A fixed cost does not respond to
Q34: For a specified time period, fixed costs:<br>A)
Q35: The _ section of a business plan
Q36: The total _ is the difference between
Q37: After weighing all factors surrounding alternatives, a