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SanFrancisco Inc. manufactures computer supplies. San Francisco Inc. has variable expenses of $1.25 (for software)...

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Accounting

SanFrancisco Inc. manufactures computer supplies. San Francisco Inc. has variable expenses of $1.25 (for software) and $0.75 (for hardware) per unit. Assume that total fixed expenses are 50,000. The devices are sold for $6 each.

  1. In the space below, draw a blank/generic Break Even Chart/Graph.
  2. draw the fixed cost line.
  3. Draw the Variable cost line
  4. Draw the Total Cost Line
  5. Draw the Total Revenue line on the chart (HINT: Make sure the total cost and total revenue lines intersect). HINT: Dont worry about the scale or numbers on the axis, just draw a generic graph.
  6. Now using the information provided in the question, calculate the Break Even Point in units.
  7. Given your BEP in units (from Part B), calculate the BEP in dollars.
  8. Label both the quantity and the $ amount calculated in parts b and c on the blank/generic BEP chart you sketched for part A.

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