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Chapter 2: 1BP_b (page 145)

Shock Electronics sells portable heaters for \(35 per unit, and the variable cost to produce them is \)22. Mr. Amps estimates that the fixed costs are $97,500.

b. Fill in the table (in dollars) to illustrate the break-even point has been achieved.

Sales

  • Fixed cost
  • Total variable cost

Net profit (loss)

Short Answer

Expert verified

Sales

$262,500

  • Fixed cost

(97,500)

  • Total variable cost

(165,000)

Net profit (loss)

0

Step by step solution

01

Sales

Sales=Numberofbreakevenunits×Sellingpriceperunit=7,500×$35=$262,500

02

Total variable cost

Variablecost=Numberofunitssold×Variablecostperunit=7,500×$22=$165,000

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