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Hartnett Corporation:
Answer:
Contibution Margin = $53 - $28 = $25
=> Breakeven point = $40,000/25 = 1600 bats
Profit of $19,000:
Contribution margin = $19000+$40,000 = $59,000
=> Sales = $59,000/25 = 2360 bats
Eaton Company:
Answer:
Contribution margin = $92 - $49 = $43
Breakeven units = $421,400/$43 = 9800 units
Fixed costs reduces to $330,000
=> Breakeven units =$330,000/(92-52) = 8250 units
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