Steve Bauman is the owner of a company that manufactures metal doors that are utilized by retail outlets in shopping malls or higher crime areas where the retailer wants to provide additional security to prevent break-ins. Steve is developing a new model that provides greater metal strength, is lighter, and is more attractive when in a closed position. He's interested in determining the breakeven point in order to establish minimum goals for the first month of production. Steve estimates that his fixed costs to produce the new model will be $60,000. He plans to sell the doors to retailers at a list price of $249. Variable costs are estimated to be $95. How many units will his business need to sell in order to reach the breakeven point?
A. 390 units
B. 337 units
C. 241 units
D. 632 units
E. 154 units
Answer: A
Business
You might also like to view...
________ are distribution channel firms that help a company find customers or make sales to them
A) Resellers B) Suppliers C) Producers D) Logistics firms E) Credit companies
Business
Under a perpetual inventory system, is it necessary to take a physical inventory at the end of the period? Why or why not?
Business
Which of the following assets generally is required to be tested at least annually for impairment?
a. Machinery b. Patent c. Goodwill d. Copyright
Business
The federal courts and most state courts make up the ________ branch of government
A) legislative B) judicial C) executive D) administrative E) fourth
Business