In solving the exercises below, round all the dollar figures to TWO DECIMAL POINTS. ...
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In solving the exercises below, round all the dollar figures to TWO DECIMAL POINTS.
12-4
The Louboutin Footwear Company manufactures a luxurious line of womens formal and casual shoes. The average selling price of its finished product is $95 per pair. The variable cost for this same pair of shoes is $63. The company incurs fixed costs of $150,000 per year. a. What is the break-even point in pairs of shoes sold for the company? b. What is the dollar sales volume the firm must achieve to reach the break-even point? c. What would be the firms profit or loss at the following units of production sold? 2,500 pairs of shoes 5,000 pairs of shoes 75000 pairs of shoes
In solving the exercises below, round all the dollar figures to TWO DECIMAL POINTS.
12-4
The Louboutin Footwear Company manufactures a luxurious line of womens formal and casual shoes.
The average selling price of its finished product is $95 per pair.
The variable cost for this same pair of shoes is $63.
The company incurs fixed costs of $150,000 per year.
a. What is the break-even point in pairs of shoes sold for the company?
b. What is the dollar sales volume the firm must achieve to reach the break-even point?
c. What would be the firms profit or loss at the following units of production sold?
2,500 pairs of shoes
5,000 pairs of shoes
75000 pairs of shoes
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