Flora's Flats produces comfortable and portable women's shoes designed to be worn as a second pair of shoes after a formal event. The company has the following financial information: The company's sales price is $20 per unit. The variable costs of producing flats is $6 per unit. The company expects to have fixed costs of $10,000 next year. The company expects to sell 1,000 pairs of flats next year. Assume no taxes. a.) Calculate the breakeven point in units. b.) Calculate the breakeven point in dollars.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Flora's Flats produces comfortable and portable women's shoes designed to be worn as a second pair of
shoes after a formal event. The company has the following financial information:
The company's sales price is $20 per unit. The variable costs of producing flats is $6 per unit. The company
expects to have fixed costs of $10,000 next year. The company expects to sell 1,000 pairs of flats next year.
Assume no taxes.
a.) Calculate the breakeven point in units.
b.) Calculate the breakeven point in dollars.
Transcribed Image Text:Flora's Flats produces comfortable and portable women's shoes designed to be worn as a second pair of shoes after a formal event. The company has the following financial information: The company's sales price is $20 per unit. The variable costs of producing flats is $6 per unit. The company expects to have fixed costs of $10,000 next year. The company expects to sell 1,000 pairs of flats next year. Assume no taxes. a.) Calculate the breakeven point in units. b.) Calculate the breakeven point in dollars.
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