a. What is the break-even point in units? b. What is the break-even point in dollars? c. If Weber would like to have $1,000 profit, how many units should be sold? d. If the selling price changes to $34 per unit, what is the new break-even point in units?

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A: Break even sale is a point of sale at which business earns no profit and no loss. It means break…

Q: ?

A: Part a & b:In the case of production, the producer faces two types of cost:Fixed Costs: The…

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A: Target sales = (Fixed Cost-Desired Income)/contribution per unit

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A: Solution 1: Contribution margin ratio = 100% - Variable cost ratio = 100% - 70% = 30%

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Q: the firm must have a sales price per unit of at least *

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Q: ?

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A: Probability that sales will be low = 100 - Probability that sales will be high = 100 - 70% = 30%

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Pricing

Pricing is used as a term in finance and economics, pricing is the process of fixing a value for a product or a service. Pricing establishes a value for a product or service that the customer has to pay. A business can choose from different strategies while deciding to set prices.