Asked by Annet Jamrych on May 11, 2024
Verified
Use the Texas Instruments BAII plus break-even worksheet to solve the following.
Recall:
FC: total fixed costs
VC: Variable costs per unit
P: Selling price per unit (S in textbook)
PFT: Profit or Net Income
Q: Number of units sold (x in textbook)
Toys-4-U manufactures a toy that it sells for $65.00 each. The variable cost per toy is $15 and the fixed costs for this product line are $250,000 per year. What number of sales would generate a profit of $5000?
Profit
The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.
- Find break-even points quantified in units and dollars by applying various techniques, and assess the implications.
- Discover the required sales volume to achieve a specific target in operating income or profit.
Verified Answer
KC
Learning Objectives
- Find break-even points quantified in units and dollars by applying various techniques, and assess the implications.
- Discover the required sales volume to achieve a specific target in operating income or profit.
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