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What volume of production threshold of profitability reached

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The company ABC, L.C. manufactures some products with an average sales price of € 25/unit, with fixed annual costs of € 110,000. The average unit variable costs are € 5.

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Question a) At what volume of production will the threshold of profitability be reached?

Question b) Assuming that annual sales are estimated at 20,000 units, being the distribution evenly over a year, on what date will the break-even point be reached?

Question c) What would be the sales value or turnover corresponding to the threshold of profitability?

Reference no: EM132613471

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