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​(​Break-even point and operating leverage​) Footwear Inc. manufactures a complete line of​ men's and​ women's dress...

​(​Break-even point and operating leverage​)

Footwear Inc. manufactures a complete line of​ men's and​ women's dress shoes for independent merchants. The average selling price of its finished product is $95 per pair. The variable cost for this same pair of shoes is $50. Footwear Inc. incurs fixed costs of ​$180,000 per year.

a. What is the​ break-even point in pairs of shoes sold for the​ company?

b. What is the dollar sales volume the firm must achieve to reach the​ break-even point?

c. What would be the​ firm's profit or loss at the following units of production​ sold:

4,000 pairs of​ shoes? 11,000 pairs of​ shoes? 16,000 pairs of​ shoes?

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jeff jeffy answered 1 year ago
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