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What would be break even point

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Question - Company estimates selling 7,000 signs

Selling for $75 and require variable costs of $25

Annual fixed cost $300,000

Must sell 6,000 to break even

6300 must be sold to earn profit of $15,000

A. If 7,000 signs sell, how much profit earned?

B. What would be break even point if sales decrease 20%?

C. What would be break even point if variable cost per sign decreased 40%?

D. What would break even point be if fixed costs increased by $50,000?

Reference no: EM131723522

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