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Because of EDC's massive expansion plan, their fixed costs are expected to skyrocket in the...

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Accounting

Because of EDC's massive expansion plan, their fixed costs are expected to skyrocket in the next year due to hiring, long-term asset purchases, and so on. The plant manager expects fixed costs to increase to $800,000. They sell desks for $700, and the variable costs for each are $45. Based on this information, your manager asks you to determine the following amounts:

  1. the break-even point in units,
  2. the break-even point in sales dollars, and
  3. the number of units needed to be sold for a profit of $200,000.

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