Premier Printing produces custom labels and stationary for companies. In conducting CVP analysis of its Personalized Package, management decided to determine how many of the packages would need to be sold in order to justify continuing the product line. Management determined that fixed costs direct related to this particular product amounted to $27,000 annually. Premier reported $120,000 of gross sales related to this product and variable product costs of $90,000. Assuming that each Personalized Package sells for $12 per unit, what is the minimum number of Personalized Packages that Premier needs to sell to break even and therefore justify the product line?

Premier Printing produces custom labels and stationary for companies. In conducting CVP analysis of its Personalized Package, management decided to determine how many of the packages would need to be sold in order to justify continuing the product line. Management determined that fixed costs direct related to this particular product amounted to $27,000 annually. Premier reported $120,000 of gross sales related to this product and variable product costs of $90,000. Assuming that each Personalized Package sells for $12 per unit, what is the minimum number of Personalized Packages that Premier needs to sell to break even and therefore justify the product line?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 10EB: Keleher Industries manufactures pet doors and sells them directly to the consumer via their web...

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