Problem
Lucent Manufacturing Company makes a product that it sells for $69 per unit. The company incurs variable manufacturing costs of $24 per unit. Variable selling expenses are $16 per unit, annual fixed manufacturing costs are $197,000, and fixed selling and administrative costs are $197,110 per year.
Required:
Determine the break-even point in units and dollars using each of the following approaches:
Breakeven points in units and break even points in dollars.