Calculate the break-even point in sales

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Reference no: EM13914001

Dr. Peterside is considering buying a company if it will break even or earn net income on revenues of $80,000 per month. The company that Dr. Peterside is considering sells each unit it produces for $5. Use the following cost data to:

Volume (units) Cost

8,000 $70,000

68,000 190,000

Requirements:

a. Using the high-low method to compute the variable cost per unit and the fixed cost for the period.

b. Calculate the break-even point in sales dollar.

c. Should Dr. Peterside buy this company.

Reference no: EM13914001

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