Reference no: EM133012083

Question - A manufacturer plans to introduce a new type of shirt based on the following information.

The selling price is $35.00; variable cost per unit is $15.00; fixed costs are $8200.00; and capacity per period is 740 units.

a) Calculate the break-even point

(i) in units

(ii) in dollars

(iii) as a percent of capacity

b) Draw a detailed break-even chart.

c) Calculate the break-even point (in units) if fixed costs are reduced to $7000.00.

d) Calculate the break-even point (in dollars) if the selling price is increased to $40.00.