What was the fixed cost associated with the utilities bill

Reference no: EM132753190

Question: 1. Our company sells a product for $120 per unit. Variable costs are $90 per unit and fixed costs are $4,000. The company expects to sell 200 units this year. How many units must we sell to earn a profit of $5,000?

2. Our company has reviewed the utilities bills for our company. We have determined that the highest and lowest bills were $5,200 and $3,200 for the months of January and September. If we produced 1,000 and 600 units in these months, what was the fixed cost associated with the utilities bill?

3. Our company sells its product for $60 per unit and has a variable cost of $30 per unit. Total fixed costs equal $20,000. What would be the breakeven point in units if variable cost decreased by $10?

4. Our company sells its product for $80 per unit and has a variable cost of $40 per unit. Total fixed costs equal $18,000. The breakeven in units is 450, and we expect to sell 400 units. What is the margin of safety in dollars?

Reference no: EM132753190

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