Illustrate what would be total revenue at break-even point

Reference no: EM13121770

Q. Crazy Crafters is a manufacturer of furniture items. The company is considering the possibility of offering a new coffee table that would sell for $415 each. Cost to manufacture these coffee tables comprises $135 in materials and $80 in direct labour for each coffee table. Variable marketing and selling costs would be $25 each. In order to manufacture these coffee tables, the company would need to incur $525,000 in fixed costs for new equipment.

a. Calculate the break-even point of the coffee tables in units sold.

b. Illustrate what would be the total revenue at the break-even point?

c. Explain how many units would Crazy Crafters need to sell to earn a profit of $157,500?

d. If fixed costs in fact are $595,000 rather than $525,000, explain how many units would need to be sold in order to earn $157,500?

Reference no: EM13121770

Questions Cloud

Construction contracted to build a bridge : Dalton construction contracted to build a bridge for $5,000,000. Construction began in 2010 and was completed in 2011. Data relating to construction are:

What is the total pressure in the flask : A sample of He gas (V = 3.0 L) at 5.6 atm and 25 °C was combined with 4.5 L of Ne gas at 3.6 atm and 25 °C in a 9.0 L flask (which was initially evacuated).

How to assure the fidelity of dna replication : Genetic variability is beneficial for a species because it enhances its ability to adapt to changing conditions. Why then does a cell go to great lengths to assure the fidelity of DNA replication?

Probability-adult weighs less than one hundred ninety pounds : Standard deviation of 10 pounds.. Find the probability, P(W

Illustrate what would be total revenue at break-even point : In order to manufacture these coffee tables, the company would need to incur $525,000 in fixed costs for new equipment. Calculate the break-even point of the coffee tables in units sold. Illustrate what would be the total revenue at the break-even po..

Stating restrictions on mathematical expressions : If the following expression (5t+5)/(2t+5) is to make sense, the values that t can take must be restricted. State the restriction on it.

How such a mutation might alter the expression of a gene : how such a mutation might alter the expression of a gene.

Draw a tree diagram to describe the situation : Two friends Dave and Pete often play squash and tennis together. Over the years, they have found that Dave wins 3 out of every 5 rounds of squash and 1 out of every 4 tennis matches

What mass of water vapor results : When 3.8 L of propane gas is completely combusted to form water vapor and carbon dioxide at 350°C and 0.936 atm, what mass of water vapor results?

User Account

All Pages