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You have invented a new healthy herbal energy drink that helps students focus and stay alert for many hours. You set up a small business by selling it at your local collage while studying full time. In 2015 you have sold 30,000 cans of the drink.
Your cost information is below:
Fixed Cost $40,000
Variable Cost $0.40 per can
Selling Price $2 per can
Problem a. Calculate the break-even point in units.
Problem b. Calculate the break-even point in dollars.
Problem c. How much profit was earned in 2015?
Problem d. How many units would need to be sold to earn your target profit of $150,000?
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