JenStar has a single product with a sales price of $22 and whose variable cost is $10 per unit. The company's monthly fixed cost is $30,000. a) Prepare a cost-volume-profit graph for JenStar Then, identify the break-even point on the graph. Finally, plot the shaded areas that correspond to the profits and losses. To plot a point, click anywhere on the graph. To plot a line, plot two or more points and a line will be drawn to connect them. To plot an area, plot three or more points and a shaded area will appear between the points. Select which item you would like to plot from the drop down at the top of the graph. Y Total Revenue $000 105- 90- 75 60 45- 30- 15- 0 Reset 1000 2000 3000 Volume in Units 4000 b) Estimate the JenStar's break-even point in unit sales using your cost-volume-profit graph. Break-even point = units

JenStar has a single product with a sales price of $22 and whose variable cost is $10 per unit. The company's monthly fixed cost is $30,000. a) Prepare a cost-volume-profit graph for JenStar Then, identify the break-even point on the graph. Finally, plot the shaded areas that correspond to the profits and losses. To plot a point, click anywhere on the graph. To plot a line, plot two or more points and a line will be drawn to connect them. To plot an area, plot three or more points and a shaded area will appear between the points. Select which item you would like to plot from the drop down at the top of the graph. Y Total Revenue $000 105- 90- 75 60 45- 30- 15- 0 Reset 1000 2000 3000 Volume in Units 4000 b) Estimate the JenStar's break-even point in unit sales using your cost-volume-profit graph. Break-even point = units

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 3E

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