A central heating installation company has a fixed annual cost of $120,000. The variable costs are $1,000 per unit. The
Posted: Wed Mar 30, 2022 3:48 pm
A central heating installation company has a fixed annual cost
of $120,000. The variable costs are $1,000 per unit. The company
charges $3,500 per unit installed.
For an annual volume of 57 units, determine the total cost,
total revenue, and profit.
Determine the annual break-even volume for this company.
If the central heating company in Problem 2 reduces its unit
price by 5%, what effect will it have on the break-even
volume?
If the central heating company in Problem 2 reduces its unit
price by 5% and reduces all costs by
2%, what effect will it have on the break-even volume?
of $120,000. The variable costs are $1,000 per unit. The company
charges $3,500 per unit installed.
For an annual volume of 57 units, determine the total cost,
total revenue, and profit.
Determine the annual break-even volume for this company.
If the central heating company in Problem 2 reduces its unit
price by 5%, what effect will it have on the break-even
volume?
If the central heating company in Problem 2 reduces its unit
price by 5% and reduces all costs by
2%, what effect will it have on the break-even volume?