Ditex Is a Manufacturer of Digital Cameras and Is Preparing

question 63

Essay

Ditex is a manufacturer of digital cameras and is preparing production and sales forecasts for the coming fiscal year. The company needs to determine the point at which the projected sales revenue will equal the total of all fixed and variable costs. Fixed costs are estimated to be $314,390, and variable costs are expected to be maintained at $150 per camera. Each camera will sell for $299. Compute (a) the breakeven point in sales units and (b) the breakeven point in sales dollars.

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Definitions:

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Patron

A supporter or regular customer of a particular store, restaurant, or cultural institution.

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A restaurant that operates under a licensed brand name, following specific operational guidelines set by the franchisor.

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