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Question - 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:
a. at the present level of operation?
b. if sales increase to the maximum that the factory can supply?
Using the information provided below, reconstruct the accounts payable account to determine the cash paid during the reporting period
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1 fixed cost are 800000 and the verable cost are 75 of unit selling price what is the break even point.2 minium
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