The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez’s autograph stamped on them. Each bat sells...
The Hartnett Corporation manufactures baseball bats with Pudge
Rodriguez’s autograph stamped on them. Each bat sells for $59 and
has a variable cost of $31. There are $42,840 in fixed costs
involved in the production process.
a. Compute the break-even point in units.
b. Find the sales (in units) needed to earn a
profit of $15,960.
Homework Answers
Contribution margin=Sales-Variable cost
=(59-31)=$28 per unit
a.Breakeven point=Fixed costs/Contribution margin
=42,840/28
=1530 units
b.Target Contribution margin=Fixed cost+Target profits
=(42,840+15,960)=$58800
Hence target sales=58800/28
=2100 units.
Add Answer to:
The Hartnett Corporation manufactures baseball bats with Pudge
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