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Calculate the break-even quantity

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?Task : ?

Bikes-for-two, Inc., produces tandem bicycles. Its costs have been analyzed as follows:

VARIABLE COST
Materials $30/unit
Manufacturing labor 3 hours/unit ($8/hour)
Assembly labor 1 hour/unit ($8/hour)
Packing materials $3/unit
Packing labor 20 minutes/unit ($6/hour)
Shipping cost $10/unit

FIXED COSTS
Overhead labor $50,000/year
Utilities $5,000/year
Plant operation $65,000/year
SELLING PRICE $100/unit

a. Calculate the break-even quantity.

b. Calculate the break-even revenue.

c. Develop a chart to show profits at quantities of 2,000, 4,000, 6,000, 8,000, and 10,000

Reference no: EM13833793

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