Evaluate the breakeven point in dollars

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Reference no: EM135929

DS Inc sells widgets for $ 32.00 per unit. The variable cost per unit is $ 25.00. If the total fixed cost are $ 335,000, evaluate the following:

1. Evaluate the number of widgets (units) which must be sold to break even. Evaluate the number of widgets (units) which must be sold to break even.

2. Evaluate the breakeven point in dollars

3. How many additional widgets must be sold to understand a target profit of $ 100,000?

4. IF DS Inc increase the selling price to $ 35 and variable cost per unit increases by 10 percent what is the new breakeven point in units

5. Consider the original facts and that DS will sell enough units to breakeven. Should DS spend $ 10,000 on an advertising program that may result in 1200 additional sales. Be precise and show the exact amount of profit or loss.

Reference no: EM135929

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