Maintain the same profit, If the company will sell the

Maintain the same profit

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Reference no: EM138709

Q. Auto Company comprises small plant that produces speedometers exclusively. Its yearly fixed expenses are $30,000, and its variable costs are $10 per unit. It can sell a speedometer for $25.

a. How many speedometers sell to break even?

b. What is the break-even revenue?

c. The company sold 3,000 units last year. Elucidate the profit?

d. Next year's fixed costs are expected to rise to $37,500. Elucidate what will be quantity of break-even?

e. If the company will sell the number of units obtained in part d and wants to maintain the same profit as last year, what will its new price have to be?

Reference no: EM138709

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