Determine the break-even point and the fixed cost per kg

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Reference no: EM13987192

A process plant making 4000 tons per year of a product selling for $0.80 per kg has annual direct production costs of $2 million at 100 percent capacity and other fixed costs of $700,000.

i. Construct the break-even chart for the process.

ii. Determine the break-even point and the fixed cost per kg at it.

iii. If the selling price of the product is increased by 10%, what is the increase in net profit at full capacity if the income tax rate is 48% of the gross earnings?

Reference no: EM13987192

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