Lamar has the following data:Selling price$ 40 Variable manufacturing cost$ 22 Fixed manufacturing cost$ 165,000per monthVariable selling & administrative costs$ 6 Fixed selling & administrative costs$ 135,000per monthHow many units must Lamar produce and sell in order to break-even?

Break Even Point :— It is the point of production where total cost is equal to total revenue. At…

Answered: Lamar has the following data: Selling…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Selling price	$ 40
Variable manufacturing cost	$ 22
Fixed manufacturing cost	$ 165,000	per month
Variable selling & administrative costs	$ 6
Fixed selling & administrative costs	$ 135,000	per month

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Lamar has the following data: Selling price $ 40 Variable manufacturing cost $ 22 Fixed manufacturing cost $ 165,000 per month Variable selling & administrative costs $ 6 Fixed selling & administrative costs $ 135,000 per month How many units must Lamar produce and sell in order to break-even?