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Toys-4-U manufactures a toy that it sells for $30 each. The variable cost per toy...

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Accounting

Toys-4-U manufactures a toy that it sells for $30 each. The variable cost per toy is $25 and the fixed costs for this product line are $45,000 per year. They estimate they can produce 15,000 toys per production period.
a. What is the break-even point in units?
Break-even point
toys per year
b. What is the break-even sales revenue?
Break-even sales revenue $
per year
c. What is the break-even volume as a percent of capacity? (Round your answer to 1 decimal place.)
Break-even volume
%
d. What would their net income be if they sold 12,500 toys?
Net income $
e. What level of output is required to have a net income of $12,000?
Level of output
toys per year

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