Break Even Analysis - Hazardous Toys Company
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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.
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Solution Summary
The solution explains how to calculate the breakeven units and the units needed for desired profits
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a. Compute the break-even point in units
Breakeven point is where the total contribution margin = fixed costs since the operating income is zero. In terms of an ...
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