okaysree3

Dawn peanut butter and jelly sandwiches Inc. has fixed costs of $90,000. Its product currently sells for 6$ per unit and has variable costs of 2$ per unit Mr. Jiff the head of manufacturing proposes to buy new equipment that will cost $300,000 and drive up fixed costs to $220,000. Although the price will remain set at six dollars per unit, the increased automation will reduce cost per unit to $1.50.

as a result of Jiff’s suggestion, will the break even point go up or down? Compute the necessary numbers to support your answer. 

Weston Co has fixed costs of $250,000 and sells its units for $65, and has variable costs of 35$/unit.

The Partner Corp manufacturers basketball shoes with LeBron James autographed stamped on them. The shoe sell for $135 and has a variable cost of $122.  there are $97,500 in fixed costs involved in the production process. Compute the break-even point in units. Find the sales in units needed to earn a profit of $262,500.