A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. what are the following 1. How many units per year must be sold for the company to breakeven? 2. If 10,000 units per year are sold, what is the annual profit? 3. If the selling price is lowered to $35 per unit, how many units must be sold each year for the company to earn a profit of $60,000 per year?
A manufacturing company leases a building for $100,000 per year for its manufacturing facilities. In addition, the machinery in this building is being paid for in installments of $20,000 per year. Each unit of the product produced costs $15 in labor and $10 in materials. The product can be sold for $40. what are the following
1. How many units per year must be sold for the company to breakeven?
2. If 10,000 units per year are sold, what is the annual profit?
3. If the selling
4. If the labor cost is increased by 10% and materials cost is increased by 5%, the number of units to break even is closest to:
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