(2) A company sells its products for $50 per unit. It has annual fixed cost of $300,000 and variable costs of $20 per unit. The company has a capacity to make 100,000 units per year. (a) How many units must be sold to breakeven? (b) What is the percentage of capacity at breakeven? (c) What is the profit at 25,000 units?

Practical Management Science
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Author:WINSTON, Wayne L.
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(2) A company sells its products for $50 per unit. It has annual fixed cost of $300,000 and
variable costs of $20 per unit. The company has a capacity to make 100,000 units per year.
(a) How many units must be sold to breakeven?
(b) What is the percentage of capacity at breakeven?
(c) What is the profit at 25,000 units?
Transcribed Image Text:(2) A company sells its products for $50 per unit. It has annual fixed cost of $300,000 and variable costs of $20 per unit. The company has a capacity to make 100,000 units per year. (a) How many units must be sold to breakeven? (b) What is the percentage of capacity at breakeven? (c) What is the profit at 25,000 units?
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