A manufacturer of ovens sells them for $1,200 each. The variable costs are $610 per unit. The manufacturer's factory has annual fixed costs of $2,050,000. a. Given the expected sales volume of 4,900 units for this year, what will be this year's net income? Express the answer with a positive sign for profit or negative sign for loss, rounded to the nearest cent b. How many units must the manufacturer produce to break even if the fixed costs increased by 10.00%? Round up to the next whole number
A manufacturer of ovens sells them for $1,200 each. The variable costs are $610 per unit. The manufacturer's factory has annual fixed costs of $2,050,000. a. Given the expected sales volume of 4,900 units for this year, what will be this year's net income? Express the answer with a positive sign for profit or negative sign for loss, rounded to the nearest cent b. How many units must the manufacturer produce to break even if the fixed costs increased by 10.00%? Round up to the next whole number
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:A manufacturer of ovens sells them for $1,200 each. The variable costs are $610 per
unit. The manufacturer's factory has annual fixed costs of $2,050,000.
a. Given the expected sales volume of 4,900 units for this year, what will be this year's
net income?
Express the answer with a positive sign for profit or negative sign for loss, rounded to the nearest cent
b. How many units must the manufacturer produce to break even if the fixed costs
increased by 10.00%?
Round up to the next whole number
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