XYZ Company is planning to manufacture and sell a new product.
The selling price for each unit is set at $ The company
expects to produce and sell units of this product. The
following table provides a breakdown of the costs associated with
the production and sale of the product. Givin the following table, find the awnsers to the following questions. Calculate the variable cost per unit.
Calculate the contribution margin per unit.
Determine the breakeven point in units.
Determine the breakeven point in dollars.
Based on the planned production and sale of units,
calculate the expected profit or loss.
If the company wants to achieve a profit of $ how many
units should they sell? Hint: Add the desired profit to the total
fixed costs, then divide the result by the contribution margin per
unit.
