What is the break-even point for scooter production

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Reference no: EM131404661

Samocat Automotive want to move the production of their motor scooters to a purpose-built new plant that will cost £24 m to construct. The scooters sell for £1850 and variable costs of production amount to £1100 per scooter.

(a) What is the break-even point for scooter production at the new plant?

(b) How will the break-even point change if the costs of the new plant rise to £30 m?

Reference no: EM131404661

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