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

question 102

Essay

For the past year,LaPrade 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 (in units)for (a)the past year and (b)the coming year.

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Definitions:

Product Liability Lawsuit

Legal action taken against a manufacturer or seller for producing or selling a defective product that causes injury or harm to the consumer.

Vacation Pay

A benefit provided by employers that pays employees while they are on holiday.

Legal Counsel

Professional legal advisory services provided by a lawyer or law firm to individuals, businesses, or other entities.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and ability to fund day-to-day operations.