A plant has annual fixed costs of $100,000. Variable costs are $40,000 per year at 80% production capacity; annual revenues are $70,000 at this capacity. The selling price per unit is 335. a. At 80% capacity, what are annual sales in number of units? b. What is the variable cost per unit? c. What is the breakeven quantity?

A plant has annual fixed costs of $100,000. Variable costs are $40,000 per year at 80% production capacity; annual revenues are $70,000 at this capacity. The selling price per unit is 335. a. At 80% capacity, what are annual sales in number of units? b. What is the variable cost per unit? c. What is the breakeven quantity?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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