Purchase Solution

Break-Even Point and Profit - Hazardous Toys Company

Not what you're looking for?

Ask Custom Question

I am stuck and need help with the following problem:
Problem P5-2, Chapter 5, Block & Hirt, Finance and Accounting 11th edition.

Hazardous Toys Company prduces 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.

Purchase this Solution

Solution Summary

This shows how to determine the break-even point, as well as the number of units needed to earn a specific profit.

Solution Preview

a) Compute the break-even point in units.

Cost = 15000+7.5x ...

Purchase this Solution

Free BrainMass Quizzes
Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.