What is the break-even point in pairs of shoes sold

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Break-even point and operating leverage

Footwear Inc. manufactures a complete line of men's and women's dress shoes for independent merchants. The average selling price of its finished product is $95 per pair. The variable cost for this same pair of shoes is $55. Footwear Inc. incurs fixed costs of ?$160,000 per year.

Question a. What is the break-even point in pairs of shoes sold for the company?

Question b. What is the dollar sales volume the firm must achieve to reach the? break-even point?

Question c. What would be the firm's profit or loss at the following units of production sold: 4,000 pairs of shoes 9,000 pairs of shoes 18,000 pairs of shoes?

Reference no: EM132490598

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