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Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. a. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.) Break-even units point b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) Break-even point

Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. a. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.) Break-even units point b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) Break-even point

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. a. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.) Break-even units point b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) Break-even point
Transcribed Image Text:Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for this process, direct labor is $3.50 per package, and material is $4.50 per package. The selling price will be $12.50 per package. a. What is the break-even point in units? (Do not round intermediate calculations. Roundup your answer to the next whole number.) Break-even units point b. How much revenue do we need to take in before breaking even? (Round your answer to the nearest dollar amount.) Break-even point
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