Problem
A machine manufacturer sells each machine for $6,000. The fixed costs are $272,950 per annum, variable costs are $1,600 per machine, and the production capacity is 72 machines in a year.
i. What is the break-even volume?
ii. What is the break-even revenue?
iii. What is break-even as a percent of capacity per annum?
iv. What is the profit or loss made if 65 machines are sold in a year?