Calculate its break-even level of output

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Reference no: EM133345618

Case: Suppose a company has a fixed cost of $120,000 and a variable cost per unit of $12.  It sells its product for $17.

  1. Calculate its break-even level of output.
  2. Calculate how much it must produce to make $70,000, assuming it can sell it all.
  3.  At an output level of 35,000 units, if it can buy the product wholesale from a distributor at $14 each, should it outsource or produce the product itself?

Reference no: EM133345618

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