Basic Decision Analysis Using CVP Balance, Inc., is considering the introduction of a new energy…
Basic Decision Analysis Using CVP
Balance, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics:
Sales price
$ 1.00 per unit
Variable costs
0.20 per unit
Fixed costs
400,000 per month
Required
a. What number must Balance sell per month to break even?
b. What number must Balance sell per month to make an operating profit of $100,000?