Easy-Barrows, Inc., produces wheelbarrows. Its costs have been analyzed as follows: VARIABLE COST Materials $30/unit Manufacturing labor 3 hours/unit (at $8/hour) Assembly labor 1 hour/unit (at $8/hour) Packing materials $3/unit Packing labor 20 minutes/unit (at $6/hour) Shipping cost $10/unit FIXED COSTS Overhead labor $50,000/year Utilities $5,000/year Plant operation $65,000/year SELLING PRICE $100/unit
a. Calculate the break-even quantity.
b. Calculate the break-even revenue.
c. Develop a chart to show profits at quantities of 2000, 4000, 6000, 8000, and 10000.