Question - Company estimates selling 7,000 signs
Selling for $75 and require variable costs of $25
Annual fixed cost $300,000
Must sell 6,000 to break even
6300 must be sold to earn profit of $15,000
A. If 7,000 signs sell, how much profit earned?
B. What would be break even point if sales decrease 20%?
C. What would be break even point if variable cost per sign decreased 40%?
D. What would break even point be if fixed costs increased by $50,000?