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. Compare the break-even points in units.
b. Fill in the table below (in dollars) to illustrate that the break-even points has been achieved.
-Total variable costs:
Net Profit (Loss)
a. Break Even = Fixed costs/Price-Variables cost per unit
Prepare an answer to question one at the end of Chapter 5 of the text, Foundations of Financial Management