Find the break-even points in units-sales break-even point

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Reference no: EM131182136

The Kenergy Company is planning to manufacture and sell electronic alarm clocks. Raw materials for each clock will be $3 and direct labor per clock will amount of $6. Fixed administrative overhead costs will amount to $24,000. The clocks are expected to sell for $15 each.

a. Find the break-even points in units. What is the sales break-even point?

b. How much profit or loss will occur if 5,000 clocks are sold? What if only 3,000 clocks are sold?

Reference no: EM131182136

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