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In: Accounting
Barram, Inc. sells specialty golf clubs. He sells three different types of drivers; the Bear, the...
Barram, Inc. sells specialty golf clubs. He sells three different types of drivers; the Bear, the Lion, and the Eagle. For the next year, Barram estimates he will sell 16,000 units of the Bear, which has a variable cost of $35/unit, 24,000 units of the Lion, which has a variable cost of $40/unit, and 40,000 units of the Eagle, which has a variable cost of $55/unit. All drivers are sold for $100 per driver. He has annual fixed costs of $ 225,000. What is the break-even point in units?
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ekkarill92 answered 1 year agoRelated Solutions
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ABC level
Overhead cost
Cost driver
Fancy
Light
Disco
Unit
$400,000
Number of units
2,300
2,500
3,200
Batch
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Number of set-ups
30
50
70
Product
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25%
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Square feet
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160,000
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