ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
The fixed costs at Harley Motors are $1
million annually. The main product has
revenue of $8.50 per unit and $4.25 variable
cost. Determine the following.
(a) Breakeven quantity per year.
(b) Annual profit if 200,000 units are sold
and if 350,000 units are sold.
2. For the estimates below, calculate the
following.
(a) Breakeven quantity per month.
(b)
that are 10% above and 10% below
breakeven.
r = $39.95 per unit v = $24.75 per unit
FC =$4,000,000 per year
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