What is the breakeven point

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Reference no: EM133724288

Problem

A firm is thinking about consolidating its mobile battery assembly in one location. The leading candidate location has a monthly fixed cost of $50,000, and variable cost of $5 per battery. Mobile batteries sell for $10 each.

I. Prepare a schedule showing total profits, fixed costs, variable costs, and revenues for quantities of 10,000 and 15,000 and 20,000. What is the breakeven point?

II. If the factory was given the choice to buy the mobile battery from a factory charging $9 per battery, what is the indifference point?

Reference no: EM133724288

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