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Problem
A manufacturer plans to introduce a new type of shirt based on the following information.
The selling price is $57.00; variable cost per unit is $18.00; fixed costs are $7800.00; and capacity per period is 500 units.
Question A. Calculate the break-even point
a. in unitsb. in dollarsc. as a percent of capacity
Question B. Draw a detailed break-even chart.
Question C. Calculate the break-even point (in units) if fixed costs are reduced to $7020.00
Question D. Calculate the break-even point (in dollars) if the selling price is increased to $78.00
How does movement in the demand curve and the supply curve affect market equilibrium?
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