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Topic: Business
Number of pages / Number of words: 3 / 669
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Hazardous Toys Company produces boomerangs that sell for $8 each and have a variable cost of $7.50. Fixed costs are $15,000.a. Compute the break-even point in units. b. Find the sales (in units) needed to earn a profit of $25,000.

Table 5

Total Fixed Costs ? (Selling Price - Variable Cost) = Break-even sales

$15,000 Break-even ? ($8 Per Unit -

...


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Compute the break-even point in units. b. Find the sales (in units) needed to earn a profit of $25,000.

Table 5

Total Fixed Costs ? (Selling Price - Variable Cost) = Break-even sales

$15,000 Break-even ? ($8 Per Unit -

.. 50

$7.50) Variable Cost = 30,000 Units

($25,000 Profit +

$40,000

$15,000) Break-even ? ($8 Per Unit -

...


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