Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. this year, babc fixed costs total $110 000. the bu

This year, Babc fixed costs total $110 000. The business sells recyclable one-litre thermos drink...

50.1K

Verified Solution

Question

Accounting

image
This year, Babc fixed costs total $110 000. The business sells recyclable one-litre thermos drink containers for $13 each. The variable cost per container is $8. (a) Compute the break-even point in number of containers. (b) Compute the number of containers that Babco must sell to earn a profit of $70000. (c) If the total fixed cost increases to $150 000 next year: i. what will be Babco's break-even point in containers? ii. what will be Babco's break-even point in containers? iii. what profit (or loss) will Babco have if it sells 28 000 containers? iv. how many containers will Babco need to sell to earn a profit of $70 000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students