Calculate operating income or loss at sales volume

Reference no: EM13257507

The Death Star Business is considering the manufacture of a newtype of tennis ball. Each tennis ball would sell for $3.75 andwould require $1.75 in variable costs. In addition, annualfixed costs associated with the project would total$64,000.

Part a

Calculate the break even point in units

Part b

Calculate the break even point in sales dollars.

Part c

Calculate the operating income or loss at a sales volume of30,000 tennis balls.

Part d

Calculate the number of tennis balls that must be sold to earn aprofit of $80,000.

Reference no: EM13257507

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