Anderson blue 13 new case co produces a variety of storage, Operation Management

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Anderson blue 13 new case co produces a variety of storage

Anderson blue 13 New Case Co. produces a variety of storage cases. Suppose that the set up cost is $8,000. This is a fixed cost that is incurred regardless of the number of units eventually produced. In addition, suppose that variable labor and material costs are $7 for each unit produced. Also, assume that the selling price per unit is $12.

a) What is the break-even point in revenue dollars?

b) What is the break-even point in units?

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Operation Management: Anderson blue 13 new case co produces a variety of storage

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