Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics. Sales price $ 570.00 per unit Variable costs 330.00 per unit Fixed costs 960,000 per year Required: What number must Grove Audio sell annually to break even? What number must Grove Audio sell to make an operating profit of $180,000 for the year?
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Grove Audio is considering the introduction of a new model of wireless speakers with the following price and cost characteristics.
Sales price | $ 570.00 | per unit |
---|---|---|
Variable costs | 330.00 | per unit |
Fixed costs | 960,000 | per year |
Required:
- What number must Grove Audio sell annually to break even?
- What number must Grove Audio sell to make an operating profit of $180,000 for the year?
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