Reference no: EM132500963

A product is sold to the retail trade at a price of $ 20, the current annual turnover being 60,000 units. marginal cost of the product is $ 15. and annual fixed cost amount to $ 180000.

Question 1: Calculate the following:

a) annual profit

b) breakeven point for each of the following

I) if marginal cost increased to 16;

ii) if fixed cost and sales volume increase by 10% while the marginal cost still at $ 15.

iii) fixed cost ($ 180000) and selling price ($20) both reduced by 10%

iv) Sales quantity(60000) is increased by 40%