Suppose that a company expects the following financial results from a project during its first year operation: Sales revenue: $500,000 Total variable costs: $150,000 Fixed costs: $105,000 Total unit produced and sold: 10,000 units a. Draw and label a break-even point graph. b. Compute the contribution per unit. C. Compute the break-even point in units sold. d. Compute the profit if only 6000 units are sold.
Suppose that a company expects the following financial results from a project during its first year operation: Sales revenue: $500,000 Total variable costs: $150,000 Fixed costs: $105,000 Total unit produced and sold: 10,000 units a. Draw and label a break-even point graph. b. Compute the contribution per unit. C. Compute the break-even point in units sold. d. Compute the profit if only 6000 units are sold.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Suppose that a company expects the following financial results from a project during its first
year operation:
Sales revenue: $500,000
Total variable costs: $150,000
Fixed costs: $105,000
Total unit produced and sold: 10,000 units
a.
Draw and label a break-even point graph.
b. Compute the contribution per unit.
c. Compute the break-even point in units sold.
d. Compute the profit if only 6000 units are sold.
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