break-even point in units? (
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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22.7-3

Transcribed Image Text:Problem 7-13
Owen Conner works part-time packaging software for a local distribution company in
Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per
package, and material is $4.50 per package. The selling price will be $12.50 per
package.
a. What is the break-even point in units? (Do not round intermediate calculations.
Roundup your answer to the next whole number.)
Break-even
units
point
b. How much revenue do we need to take in before breaking even? (Round your
answer to the nearest dollar amount.)
Break-even
2$
point
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