Valencia Manufacturing can produce gadgets for $7 and sell them for $12. If fixed costs are $150,000, how many gadgets must they sell in order to have an EBIT of $75,000? a) 25,000 b) 45,000 c) 60,000 d) 75,000
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- The Price Co. can make widgets for $5 and sell them for $8. If fixed costs are $100,000, then how many widgets must they sell in order to have an EBIT of $50,000?The Price Co. can make widgets for $5 and sell them for $8. If fixed costs are $100,000, then how many widgets must they sell in order to have an EBIT of $50,000? QuestionHow many sell?
- Many units must be sold to earn an income of 75000?Break-even analysis Show all your solutions. 1. The Fixed Cost is P4,000. The material and labor costs are P4.00 per unit. The supplier’s selling price is P5.00 per unit. The break-even point is 2. Production has indicated that they can produce widgets at a cost of P4.00 each if they lease new equipment at a cost of P10,000. Marketing has estimated the number of units they can sell at a number of prices (Php4000) Which price/volume option will allow the firm to avoid losing money on this project? 3. A food repacking company estimates sales figures of Php15.5M for their most popular item. Assuming that the item sells at Php375 each, fixed costs are Php4M, and variable cost are Php215 per unit repacked. a. What is the break-even sales volume? b. Find the corresponding profit figures if the actual sales will be as estimated. 4. A manufacturer can sell a certain health supplement for P1,100 per unit. Its total cost consists of a fixed overhead of Php75,000 plus production costs of…The per-unit cost of an item is its average total cost (= total cost/quantity).Suppose a new cell phone application costs $100,000 to develop and only $.50 per unit to deliver to each cell phone customer. What will be the per-unit cost of the application if it sells 100 units? 1000 units? 1 million units?