Determine the target price

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Problem - Consider a company having the following costs for a volume of 100 unit produced and sold:

Direct Labor 5.500

Lighting expenses 4.000

Administrative staff wages 15.000

Direct material 3.750

Heating Expenses 6.000

Vehicles insurance 4.000

Leasing 2.500

Machinery power 650

Machinery depreciation 6.500

Required - Determine the target price (unit Revenue) to set Break even Point (BeP) at 1.000 pieces. And what happens to the target price (unit Revenue) if the production has a cap at 800 pieces and the company sets a profit of 10 % on Sales?

Reference no: EM133017100

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