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Calculate the break even point of firm

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A manufacturer produces three type of humidifiers. The retail price of humidifier regular(HR) is $60 with variable cost of $20. Humidifier advanced(HR) sells for $200 for its advanced feature. This model's Variable cost of $80. Humidifier simple is a simplified version and only sells for $25 with variable cost $15. The manufacturer has machines and facilities worth $320,000 annually. The sales data show that $1000 unit of HR and 10,000 units of HR was sold last year. Calculate the break even point of firm. The firm has some idle capacity at these volumes, and chooses to cut the selling price of HR from $60 to $45, believe that it's sales volume will rise from 1000 unit to 2500 units. What is the revised break even point?

Reference no: EM132615991

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