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PNG electric company manufactures a number of electric products. Rechargeable light is one of the PNG's products that sells for $180/unit. Total fixed expenses related to rechargeable electric light are $270,000 per month and variable expenses involved in manufacturing this product are $126 per unit. Monthly sales are 8,000 rechargeable lights.
Problem 1: Compute break-even point of the company in dollars and units.
Problem 2: At 8000 units what is the MOS in units & value.
Problem 3: According to a research conducted by sales department,the firm can increase their sales price by 20%. If we use the above data , calculate the new break-even point and the profit.
Problem 4: Compute the number of rechargeable lights to be sold to earn a target profit of $189,000 per month (use original data).
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