The Atlantic Company Sells a Product with a Break-Even Point

question 137

Short Answer

The Atlantic Company sells a product with a break-even point of 3,000 sales units. The variable cost is $60 per unit, and fixed costs are $270,000.
Determine:
(a) unit sales price
(b) break-even points in sales units if the company desires a target profit of $36,000.

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Definitions:

Treasury Notes

Medium-term interest-bearing securities issued by the U.S. government with maturity periods typically between 1 and 10 years.

Commercial Paper

A short-term, unsecured promissory note issued by corporations with high credit ratings to fund immediate operational needs.

Chartered Financial Analyst

A professional designation given by the CFA Institute that measures the competence and integrity of financial analysts.

Securities Analysis

The examination and evaluation of the market and financial performance of investment instruments such as stocks, bonds, and commodities.