Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. general management
  3. a new piece of equipment will have a fixed cost of

A new piece of equipment will have a fixed cost of $250,000 and the product it...

80.2K

Verified Solution

Question

General Management

A new piece of equipment will have a fixed cost of $250,000 andthe product it would produce has a variable cost of $22.50, and aselling price of $35.

A. What is the break-even point?

B. How many units must be sold to make a profit of $750,000?

C. How many units must be sold to average $0.50 profit per unit?$0.75 profit per unit? And $2.50 per unit?

D. If investors expect a 15% Return on Investment (ROI), howmany units must be sold to achieve this goal?

Answer & Explanation Solved by verified expert
3.8 Ratings (437 Votes)
A Contribution per unit Selling price per unit Variable costs per unit 35 2250 1250 per unit Breakeven point in units Fixed costs Contribution per unit 250000 1250    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Marcella spoke of how her grandmother described her. “According to my grandmother, I was a difficult...

Psychology
Q

For your fictitious healthcare service, you will create a balance sheet and income statement based upon...

Accounting
Q

A rectangular cavity ABCD is carved inside an equilateral prism PQR of refractive index 2...

Physics
Q

A flask contains carbon monoxide and carbon dioxide gases The partial pressures of each are...

Physics
Q

O A horizontal plank has a rectangular block placed on it The plank stars oscillating...

Physics
Q

4 Given that RSTU is a parallelogram and ST TU explain why RSTU must also...

Geometry
Q

A square pyramid has a length of 18 feet If the surface area is 575...

Basic Math
Q

4. Write down the sequence of the first twenty Fibonacci numbers and discover arelation between...

Algebra
Q

The following data are from the income statement of Rathbun Company: The company's gross...

Accounting
Q

Naseem Co. is a part to major litigation that it may lose and decides not...

Accounting
Q

Fit-for-LIfe Foods reports the following income statement accounts for the year ended December 31. ...

Accounting
Q

The following adjusted account information, in alphabetical order, was taken from the worksheet of Johns...

Accounting