What is the break even point in dollars

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Reference no: EM13250890

two students decide to open their own copy-service business. the annual fixed cost is $54,000 and the average variable cost for each copy sold is $.08. they expect to sell each copy at $.12 per copy.

a) draw the break even chart and indicate all the relevant costs.

b) what is the break even point in dollars?

c) after their first year in operation in which they generated $155,000 in revenues they decide to pay each other $14,000 per year in salaries. What do their annual sales have to be in the second yuear if they want to make the same amount of profit as they did in their first year?

Reference no: EM13250890

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