Question: A manufacturer is making a limited run of widgets. They will need special equipment which will be destroyed (no salvage value) at the end of the limited run. The cost and revenue data for the widgets are as follows:
Selling Price per Widget |
$4,800 |
Variable Cost per Widget |
$2,640 |
Special Equipment Costs |
$240,000 |
How many widgets do they need to make during the run to breakeven?