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What price does Andromeda charge

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Problem -

Abraham Company had revenues of $830,000 last year with total variable costs of $647,400 and fixed costs of $110,000. What is the break-even point in sales revenue? What was the margin of safety for Abraham last year?

Abraham is considering starting a multimedia advertising campaign that is supposed to increase sales by $12,000 per year. The campaign will cost $4,500. Is the advertising campaign a good idea? Explain.

Andromeda Company's break-even point is 2,400 units. Variable cost per unit is $42; total fixed costs are $67,200 per year. What price does Andromeda charge?

Reference no: EM132871628

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