What is the operating profit or loss

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Q1: A manufacturer plans to introduce a new type of shirt based on the following information. The selling price is $57; variable cost per unit is $18; fixed costs are $7800; and capacity per period is 500 units.

Calculate the break-even point

(1) in units

(2) in dollars

(3) as a percent of capacity

Q2: A clothing retailer buys winter coats from one of its suppliers for $67.50. The regular selling price of the coats includes operational expenses of 46% of the selling price and a profit of 30% of the selling price. Due to an unexpected warm winter, the sales have been slow. The retailer decides to mark down this line of coats by 20% to increase sales. What is the operating profit or loss on the coats sold during the promotional sale?

Reference no: EM132993062

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