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How many signs must be sold to break even

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Question - The company will sell 7000 signs. The signs are expected to sell for $75 and require variable costs of $25. The Sign of Things to Come has annual fixed costs of $300 000.

Required

a. How many signs must be sold to break even?

b. How many signs must be sold to earn a profit of $15 000?

c. If 7000 signs are sold, how much profit will be earned?

d. What would be the break-even point if the sales price decreased by 20 per cent? Round your answer to the nexthighest number.

e. What would be the break-even point if variable costs per sign decreased by 40 per cent?

f. What would be the break-even point if fixed costs increased by $50 000?

Reference no: EM131589982

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