Owen conner works part time packaging software for a local distribution company in indiana. The annual fixed cost is $15,000 for this process, direct labor is $4.00 per package, and material is $5.00 per package. The selling price will be $15.00 per package. How much revenue do we need to take in before breaking even? What is the break even point in units?

Owen conner works part time packaging software for a local distribution company in indiana. The annual fixed cost is $15,000 for this process, direct labor is $4.00 per package, and material is $5.00 per package. The selling price will be $15.00 per package. How much revenue do we need to take in before breaking even? What is the break even point in units?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 3MC

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