Therapeutic Systems sells its products for $23 per unit. It has the following costs Rent Factory labor Executives under contract Raw material $ 195,000 $9.00 per unit $365,500 $ 2.20 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $23, compute the break-even point. Note: Do not round intermediate calculations. Break-even point units

Therapeutic Systems sells its products for $23 per unit. It has the following costs Rent Factory labor Executives under contract Raw material $ 195,000 $9.00 per unit $365,500 $ 2.20 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $23, compute the break-even point. Note: Do not round intermediate calculations. Break-even point units

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter13: Nonlinear Optimization Models

Section: Chapter Questions

Problem 4P: The profit function for two products is: Profit3x12+42x13x22+48x2+700, where x1 represents units of...

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Grand Canyon Manufacturing Inc. produces and sells a product with a price of 100 per unit. The following cost data have been prepared for its estimated upper and lower limits of activity: Overhead: Selling and administrative expenses: Required: 1. Classify each cost element as either variable, fixed, or semi-variable. (Hint: Recall that variable expenses must go up in direct proportion to changes in the volume of activity.) 2. Calculate the break-even point in units and dollars. (Hint: First use the high-low method illustrated in Chapter 4 to separate costs into their fixed and variable components.) 3. Prepare a break-even chart. 4. Prepare a contribution income statement, similar in format to the statement appearing on page 540, assuming sales of 5,000 units. 5. Recompute the break-even point in units, assuming that variable costs increase by 20% and fixed costs are reduced by 50,000.
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