Marty McDonald has a business packaging software inWisconsin. His annual fixed cost is $10,000, direct labor is $3.50 per package, and material is $4.50 per package. The sell-ing price will be $12.50 per package. What is the break-even point in dollars? What is break-even in units?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
icon
Related questions
icon
Concept explainers
Topic Video
Question

Marty McDonald has a business packaging software in
Wisconsin. His annual fixed cost is $10,000, direct labor is

$3.50 per package, and material is $4.50 per package. The sell-
ing price will be $12.50 per package. What is the break-even

point in dollars? What is break-even in units?

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Marketing
Marketing
Marketing
ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing