A company sells one of its products for $13.80 per unit. Its fixed costs are $1,080.00 per month, and the variable cost per unit is $4.80. The production capacity is 625 units per month. (a) The break-even volume, i.e., the level of output at break-even, is per month. (If necessary, round up to the next whole number of units.) (b) The break-even volume as a percent of capacity is your answer to two decimal places.) units (d) The net income at the break-even level of output is $ %. (If necessary, round (c) The break-even revenue, i.e., the total revenue at the break-even level of output, is per month.
A company sells one of its products for $13.80 per unit. Its fixed costs are $1,080.00 per month, and the variable cost per unit is $4.80. The production capacity is 625 units per month. (a) The break-even volume, i.e., the level of output at break-even, is per month. (If necessary, round up to the next whole number of units.) (b) The break-even volume as a percent of capacity is your answer to two decimal places.) units (d) The net income at the break-even level of output is $ %. (If necessary, round (c) The break-even revenue, i.e., the total revenue at the break-even level of output, is per month.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:A company sells one of its products for $13.80 per unit. Its fixed costs are $1,080.00
per month, and the variable cost per unit is $4.80. The production capacity is 625 units
per month.
(a) The break-even volume, i.e., the level of output at break-even, is
per month. (If necessary, round up to the next whole number of units.)
(b) The break-even volume as a percent of capacity is
your answer to two decimal places.)
units
(d) The net income at the break-even level of output is $
%. (If necessary, round
(c) The break-even revenue, i.e., the total revenue at the break-even level of output, is
$
per month.
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