Question:
1. Break-even point
Henegar Corporation sells products for $14 each that have variable costs of $11 per unit. Henegar's annual fixed cost is $153,000.
Required
Determine the break-even point in units and dollars.
2. Desired profit
Strother Company incurs annual fixed costs of $54,320. Variable costs for Strother's product are $7.80 per unit, and the sales price is $13.00 per unit. Strother desires to earn an annual profit of $45,000.
Required
Determine the sales volume in dollars and units required to earn the desired profit.