A Division of a Corporation Manufactures Bicycle Pumps

question 148

Essay

A division of a corporation manufactures bicycle pumps. Each pump sells for $7, and the variable cost of producing each unit is 60% of the selling price. The monthly fixed costs incurred by the division are $80,000. What is the break-even point for the division?
break-even production __________ units
break-even revenue $ __________

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Definitions:

External Threads

Threads on the outside of a cylindrical surface, designed to fit into a corresponding part with internal threads.

Internal Threads

Threads located on the inside surface of a hole, designed to mate with external threads on a bolt or screw.

Die Cuts

Precise shapes cut from various materials using a die or mold.

Grade 8

A classification referring to the strength and durability of bolts and fasteners, indicating high tensile strength.