Perform a breakeven analysis

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Reference no: EM131063598

The Lade & Bach Company produces office chairs. The price of the chairs is $99.75 and the variable cost per chair is $49.75. The following fixed costs are incurred:

Depreciation of plant and equipment per year $20,000

Property taxes per year 12,000

Manager's salary and fringe benefits per month 5,200

Perform a breakeven analysis of this company:

a. What is the breakeven point in number of chairs?

b. How many chairs must be sold for the company to make $75,000 in a year?

Reference no: EM131063598

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