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    I need help finding the answers to the questions attached, the class is Operating and Financial leverage

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    I need your help finding the answer to the folloing problems:

    Shock Electronics sells portable heaters for $25 per unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000.
    a.) How do I compute the break-even point in units?

    b.) How do I fill in the table below (in dollars) to illustrate that the break-even point has been achieved.

    sales
    fixed costs
    total variable costs
    net profit (loss)

    Therapeutic Systems sells its products for $8 per unit. It has the following costs:
    Rent $120,000
    Factory labor $1.50 per unit
    Executive salaries $112,000.
    Raw material $.70 per unit

    How do I seperate the expenses between fixed and variable costs per unit. And using this information and the sales per unit of $6, How do I compute the break- even point?

    I greatly appreciate your help thank you very much

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    https://brainmass.com/business/finance/31687

    Solution Preview

    Shock Electronics sells portable heaters for $25 per unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed costs are $96,000.
    a.) How do I compute the break-even point in units?
    the marginal contribution of each unit is MC = P-VC = 25-17= $8
    Then the break-even point q = ...

    $2.19

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