break even point

| December 10, 2015

The local convenience store makes bread. Currently, their oven can produce 50 pieces of bread per hour. It has a fiixed cost of $2,000, and a variable cost of $0.25 per bread. The owner is considering a bigger oven that can make 75 pieces of bread per hour. It has a fixed cost of $3,000, but a variable cost of $0.20 per piece of bread.

The price per bread is $5. The current break-even points in units is:

The current break-even point in dollars is:

The new break-even point in units will be:

The new break-even point in dollars will be:

If the owner expects to sell 9,000 pieces of bread and changes the oven, will profit change? If so, by how much?

Get a 5 % discount on an order above $ 150
Use the following coupon code :
2018DISC
operation planning
risk

Category: Business

Our Services:
Order a customized paper today!