1-14. Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each.
(A) If Gina sells 20 shirts, what will her total revenue be? What will her total variable cost be?
(B) How many shirts must Gina sell to break even? What is the total revenue for this?

1-15. Ray Bonds sells handcrafted yard decorations at county fairs. The variable cost to make these is $20 each, and he sells them for $50. The cost to rent a booth at the fair is $150. How many of these must Ray sell to break even?

1-16. Ray Bond, from Problem 1-15, is trying to find a new supplier that will reduce his variable cost of production to $15 per unit. If he was able to succeed in reducing this cost, what would the break-even point be?

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1-14. Gina Fox has started her own company, Foxy Shirts, which manufactures imprinted shirts for special occasions. Since she has just begun this operation, she rents the equipment from a local printing shop when necessary. The cost of using the equipment is $350. The materials used in one shirt cost $8, and Gina can sell these for $15 each.

(A) If Gina sells 20 shirts, ...

Solution Summary

There are three problems. Solutions to these problems depict the methodology to determine break even point in each case.

A start-up publishing company estimates that the fixed costs of its first major project will be $190,000, the variablecost will be $18, and the selling price per book will be $34.
a) How many books must be sold for this project to breakeven?
b) Suppose the publishers wish to take a total of $40,000 in salary for this proje

What happens at a company's break-evenpoint? How can you compute the break-evenpoint for a company? How can a change in costs for a product or service be incorporated into the break-even calculation?

James Manufacturing company provides the following information about its cost structure:
Selling Price $20.00 per book
Variablecost per unit: $6.00
Fixed costs: 112000 per year
How many units must be sold to break-even?
Assume the variablecost and the price were both cut by $4.00 per unit. Which of the following would c

A company manufactures teddy bears.They have total fixed costs of $232,548.996 in the production of bears. The selling price of each bear is $19.16.The variablecost per bear is $15.15. What is the breakevenpoint in number of bears?
a.60,100 b.61,233 c.32,455 d.57,993 e.not given

1. ABC Company sell for $20 per unit, and the variablecost to produce them is $15. Gateway estimates that the fixed costs are $80,000.
a. Compute the break-evenpoint in units.
b. Fill in the table below (in dollars) to illustrate that the break-evenpoint has been achieved.
Sales _______________
-Fixed costs _____

A company produces glue in 8 ounce tubes. The total fixed costs for the production of the glue are $477,999.50. The variablecost per tube is $0.38, while the selling price is $1.16 per tube.What is the breakevenpoint in tubes of glue?
a.512,840 b.612,820 c.579,930 d.114,690 e.not given

You own a company that manufactures and sells widgets. Your sales for last year were $100,000. Each widget sells for $8.50. The cost of material for each widget is $4.00 and last years labor cost was $285,000.00. The fixed costs for the operation are $185,000. What is the break-even in widgets and dollars.