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Photoking transfers old home movies primarily supper 8 film and VHS tape to DVD, the current year's projected sales volume is 2,000 units the company has been selling the services for an average of $ 200 per record DVD, variabl cost consist of the $ 2 purchase price of the blank DVD and a $ 2 handling and packaging cost, photoking's annual committed costs for this process equipment and labor are $ 400, 000please answer A and B
A calculate photoking's break even point for the current year in unitsb management is planning for the comming year when is expect unit sales volume to increased by 10 percent, the unit purchase price of the disk s drope by 30 percent, and the committed cost to increse by 10 percent, what is the new break even volum in units? what is the volum of units and dollar sales must photoking chieve in the coming year to make a profit of $ 40,000 if it is average selling price remain at $200 ?
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