A Manufacturer of an Inspecting and Profiling Web Controller Has

question 8

Short Answer

A manufacturer of an inspecting and profiling web controller has a fixed cost of $83,000 per year and variable costs of $60 per unit produced. If the product is sold at $90 per unit, determine the breakeven quantity per year for the company.

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Definitions:

Depreciation

The systematic allocation of the depreciable amount of an asset over its useful life, reflecting wear and tear, obsolescence, or aging.

Inventory

The raw materials, work-in-progress products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Revenue

The sum of money received from selling goods or providing services that are fundamental to a company's main business activities.

Indirect Effects

Consequences of an action that are not immediately apparent or directly linked to the action but occur as a secondary effect.