Construct break-even chart showing the break-even point

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A company has fixed costs of $300,000 and produces one product with a selling price of $72.00 and a variable cost of $42.00 per unit. The maximum factory capacity is 20,000 units and it anticipates selling 15,000 units. Construct a break-even chart showing the break-even point and the margin of safety at present. Fully label your diagram. How much profit will they make? 1. At the present level of operation? 2. If sales increase to the maximum that the factory can supply?

Reference no: EM132185186

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