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Evaluate the quantity at which revenue equals to costs (break-even point). Assumptions:   Fixed cost: 5000 Material costs per item: 2.25 Labor costs per item: 6.5 Shipping costs per 100 items: 200 Price per item: 12.99

Evaluate the quantity at which revenue equals to costs (break-even point). Assumptions:   Fixed cost: 5000 Material costs per item: 2.25 Labor costs per item: 6.5 Shipping costs per 100 items: 200 Price per item: 12.99

Essentials Of Investments
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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Evaluate the quantity at which revenue equals to costs (break-even point). <use Goal seek>

Assumptions:  
Fixed cost: 5000
Material costs per item: 2.25
Labor costs per item: 6.5
Shipping costs per 100 items: 200
Price per item: 12.99
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