For the Past Year, Pedi Company Had Fixed Costs of $70,000

question 171

Essay

For the past year, Pedi Company had fixed costs of $70,000, unit variable costs of $32, and a unit selling price of $40. For the coming year, no changes are expected in revenues and costs, except that property taxes are expected to increase by $10,000. Determine the break-even sales
(units) for
(a) the past year and
(b) the coming year.

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Definitions:

Second Job

Additional employment taken on by an individual in addition to their primary job, often to supplement income.

Full Time

Employment status where individuals work a minimum number of hours defined by their employer as full-time.

Business Profits

The excess of revenues generated from business activities over the costs incurred in producing those revenues, reflecting the financial success of a business.

Partners

Individuals or entities who share ownership and responsibilities in managing a business or specific venture.