Go Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7. a. What is the break-even point in number of kits? b. How many kits does Go Green needs to sell to earn a profit of $70,000? c. If the total fixed cost increases to $160,000 next year: i. What will Go Green's break-even point be in number of kits?
Go Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7. a. What is the break-even point in number of kits? b. How many kits does Go Green needs to sell to earn a profit of $70,000? c. If the total fixed cost increases to $160,000 next year: i. What will Go Green's break-even point be in number of kits?
Chapter22: Supply: The Costs Of Doing Business
Section: Chapter Questions
Problem 14E
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Go Green is a business selling worm farm start-up kit for $12 each. This year, Go Green's fixed cost totals $110,000. The variable cost per kit is $7.
a. What is the break-even point in number of kits?
b. How many kits does Go Green needs to sell to earn a profit of $70,000?
c. If the total fixed cost increases to $160,000 next year:
i. What will Go Green's break-even point be in number of kits?
ii. What profit (or loss) will Go Green have if it sells 30,000 kits?
iii. How many kits will Go Green have to sell to earn a profit of $70,000?
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