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    Break even point

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    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.

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    Solution Preview

    Calculation of break even point = Fixed cost/
    in units contribution per unit

    fixed cost 20000
    contribution per unit=selling price per unit-variable ...

    Solution Summary

    The solution contains the computation of break even point and the computation of sales for the amount of profit given.