Caribann is a company with the potential to produce 100,000 units of its sole product annually. Caribann's interplay of costs and production capacity prompts an analysis that will guide it in navigating the balance between revenue generation and cost management. The following information is available: Selling price - -----------------------------------------------------$42 per unit Variable manufacturing costs -----------------------------------$24 per unit Fixed manufacturing costs---------------------------------------$360,000 annually Fixed marketing and administrative costs ---------------------$240,000 annually Variable marketing and administrative costs -----------------$4 per unit Required: Calculate breakeven point in units and the quanity of units which need to be sold to earn a target annual profit of 120000 dollars
Caribann is a company with the potential to produce 100,000 units of its sole product annually. Caribann's interplay of costs and production capacity prompts an analysis that will guide it in navigating the balance between revenue generation and cost management.
The following information is available:
Selling price - -----------------------------------------------------$42
per unit Variable
per unit Fixed manufacturing costs---------------------------------------$360,000
annually Fixed marketing and administrative costs ---------------------$240,000
annually Variable marketing and administrative costs -----------------$4 per unit Required:
Calculate breakeven point in units and the quanity of units which need to be sold to earn a target annual profit of 120000 dollars
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