A business has the capacity to manufacture 720 electronic components per annum that it sells for $500 each. The variable costs are $270 per component and the fixed costs are $102,000 per year. a. What quantity should it sell in a year to have a net income of $41,000 per year? Round up to the next whole number b. What is the net income per year at capacity?

A business has the capacity to manufacture 720 electronic components per annum that it sells for $500 each. The variable costs are $270 per component and the fixed costs are $102,000 per year. a. What quantity should it sell in a year to have a net income of $41,000 per year? Round up to the next whole number b. What is the net income per year at capacity?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs

Section: Chapter Questions

Problem 1EP

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