Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes. The following information relates to one of their popular products, the orange flavor: Selling price per unit R20.00 Variable cost per unit R6.50 Fixed cost per unit* R10.00 Annual sales in units 99 000 *Fixed cost was allocated based on an expected annual production of 100 000 units.
Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes. The following information relates to one of their popular products, the orange flavor: Selling price per unit R20.00 Variable cost per unit R6.50 Fixed cost per unit* R10.00 Annual sales in units 99 000 *Fixed cost was allocated based on an expected annual production of 100 000 units.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes.
The following information relates to one of their popular products, the orange flavor:
|
Selling price per unit |
R20.00 |
|
Variable cost per unit |
R6.50 |
|
Fixed cost per unit* |
R10.00 |
|
Annual sales in units |
99 000 |
*Fixed cost was allocated based on an expected annual production of 100 000 units.
REQUIRED:
Calculate the break-even point in units.
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