Question

Baird Corporation produces products that it sells for $21 each. Variable costs per unit are $6, and annual fixed costs are $303,000. Baird desires to earn a profit of $49,500. Required a. Use the equation method to determine the break-even point in units and dollars. b. Determine the sales volume in units and dollars required to earn the desired profit." a Break-even point in units Break-even point in dollars b. Sales volume in units Sales in dollars

Answer 1

At breakeven point, Sales - Variable : $0 profit fixed cost o cost 2] Q_- 6.Q_-_303,000 Q_2 303, 000 15 Therefore, break even point in Units -)_Q Q-_20,200 units (Answer) Breakeven_point in dollars : 20,000 x $ 21 $424,200_Canin b) Desired profit $_49,500 Saler. Variable cost - fixed cost z 49,500 21 Q- 60 - 303,000 49,500 15Q 49,500_+_303,000 Q 352,500 15 sales volume in units Q. 23,500_units (answer z sales in dollars = 23,500 x $ 21 - $493,500 I hope I've solved to the point. Please feel free to ask any que ries and do give a thumbsup_it. the solution was satisfastory. Thank you..