Techno Designs produces head covers for golf clubs. The company expects to generate a profit next year. It anticipates fixed manufacturing costs of $126,500 and fixed general and administrative expenses of $82,030 for the year. Variable manufacturing and selling costs per set of head covers will be $4.65 and $2.75, respectively. Each set will sell for $13.40.
1) Compute the breakeven point in sales units.
2) Compute the breakeven point in sales dollars.
3) If the selling price is increased to $14.00 per unit and fixed general and administrative expenses are cut by $33,465, what will be the new breakeven point be in units.
Just need to know where to start. I don't know if I'm suppose to add 126,500 and 82,030, for the FC do I add the 4.65 to the 2.75. I have no clue as where to begin I know how the formula works but the example were pretty simple just stated the amounts that were need not four different amounts. Any help to get me started will be apreciated.