Compute the breakeven point is sales dollars

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Breakeven Analysis: Meadowlands Design products head covers for golf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $200,500 and fixed general and administrative expenses of $80,000 for the year. Variable Manufacturing and selling costs per set of head covers will be $8 and $12, respectively. Each set will sell for $30. Compute the breakeven point in sales units. Compute the breakeven point is sales dollars. If the selling price is increased to $34 per unit and fixed general and administrative expenses are cut to $37,500, what will the new breakeven point be in units? Prepare a graph to illustrate the breakeven point computed in 3. show all your work.

Reference no: EM13827172

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