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  • Feb 19, 2012, 01:20 PM
    angelsflyhigh
    Math Problem Please Help!
    I have tried to do these questions on my own but I am not getting the right answers. If anyone could help me with these I'd really appreciate it. Also if you could provide a step by step of how you got the answers that would be great!

    Engineering estimates indicate that the variable cost of manufacturing a new product will be $35 per unit. Based on market research, the selling price of the product is to be $72 per unit and there is an additional selling expense which is estimated to cost the company $10 per unit. The fixed costs applicable to this new product are budgeted at $4,800 per period and the initial production capacity is
    430 units. Given this information determine the following:

    1) The sales volume in dollars that would result in a loss of no more than $1,020.

    2) The breakeven point in units if the fixed costs are increased to $5,315.

    3) The breakeven point as a percent of capacity (rounded to the nearest percent) if the fixed costs are reduced from the original amount by $160 and the variable cost of manufacturing is increased to $39 per unit.

    4) The breakeven point in dollars if the selling price is increased to $85 per unit and all other values are as originally stated.

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