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Shock Electronics sells portable heaters for $25 each unit, and the variable expenses to manufacture them is $17. Mr. Amps estimates that the fixed costs are $96,000.a.) How do I compute the break-even point in units?
b.) How do I fill in the table below (in dollars) to illustrate that the break-even point has been achieved.
salesfixed coststotal variable costsnet profit (loss)
Therapeutic Systems sells its products for $8 per unit. It has the following costs:Rent $120,000Factory labor $1.50 per unitExecutive salaries $112,000.Raw material $.70 per unit
How do I seperate the expenses between fixed and variable costs per unit. And using this information and the sales per unit of $6, How do I compute the break- even point?
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