The price of a product is $1 a unit. A firm can produce this good with variable costs of $0.50 per unit and total fixed costs of $100. a. What is the break?even level of output? b. What is the break?even level of output if fixed costs increase to $180 and variable costs decline to $0.40 per unit?
What will be an ideal response?
a. break-even level of output: $100/($1 - $0.50) = 200 unitsb. break-even level of output: $180/($1 - $0.40) = 300 units
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Calculate cost of goods sold for the month of February.
Mimosa, Inc., a merchandising company, has the following budgeted figures:
A) $16,750
B) $30,120
C) $29,370
D) $40,200