Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $57.00, the variable cost per unit is $18.00, the fixed costs are $7800.00 and capacity per period is 500 units. a)Calculate the break-even point in units. b)Calculate the break-even point to nearest dollar. c)Calculate the break-even point as a percentage of capacity.
Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $57.00, the variable cost per unit is $18.00, the fixed costs are $7800.00 and capacity per period is 500 units. a)Calculate the break-even point in units. b)Calculate the break-even point to nearest dollar. c)Calculate the break-even point as a percentage of capacity.
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
Problem 1PS
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Dirac Manufacturers Co. plans to introduce a new type of shirt based on the following information: the selling price is $57.00, the variable cost per unit is $18.00, the fixed costs are $7800.00 and capacity per period is 500 units.
a)Calculate the break-even point in units.
b)Calculate the break-even point to nearest dollar.
c)Calculate the break-even point as a percentage of capacity.
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