The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat sells for $13 and has a variable cost of $8. There are $20,000 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 $15,000.
Calculation of break even point = Fixed cost/
in units contribution per unit
fixed cost 20000
contribution per unit=selling price per unit-variable ...
The solution contains the computation of break even point and the computation of sales for the amount of profit given.