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Draw a detailed break-even chart. b) Compute the break-even point (i) in units; (ii) in dollars; (iii) as a percent of capacity. c) Determine the break-even point in units if fixed costs are increased by $3300 while manufacturing cost is reduced $1.65 per DVD. d) Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.

Draw a detailed break-even chart. b) Compute the break-even point (i) in units; (ii) in dollars; (iii) as a percent of capacity. c) Determine the break-even point in units if fixed costs are increased by $3300 while manufacturing cost is reduced $1.65 per DVD. d) Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.

Practical Management Science
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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The Excellent DVD Company sells DVDs for $62 each. Manufacturing cost is $22.70 per DVD; marketing costs are $7.75 per DVD; and royalty payments are 15% of the selling price. The fixed cost of preparing the DVDs is $227 300. Capacity is 20 000 DVDs.
a) Draw a detailed break-even chart. b) Compute the break-even point
(i) in units;
(ii) in dollars;
(iii) as a percent of capacity.
c) Determine the break-even point in units if fixed costs are increased by $3300 while manufacturing cost is reduced $1.65 per DVD.
d) Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.

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