Trailblazer Company sells a product for $270 per unit. The variable cost is $110 per unit, and fixed costs are $1,056,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $190,080. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the company desires a target profit of $190,080
Trailblazer Company sells a product for $270 per unit. The variable cost is $110 per unit, and fixed costs are $1,056,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $190,080. a. Break-even point in sales units fill in the blank 1 units b. Break-even point in sales units if the company desires a target profit of $190,080
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Trailblazer Company sells a product for $270 per unit. The variable cost is $110 per unit, and fixed costs are $1,056,000.
Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $190,080.
a. Break-even point in sales units | fill in the blank 1 | units |
b. Break-even point in sales units if the company desires a target profit of $190,080 | fill in the blank 2 | units |
Expert Solution
Step 1
Break-even point = Fixed cost / (Sales price per unit - Variable cost per unit)
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