Delta safty system manufactures a componont used in aircraft radar system the fi

Question

Delta safty system manufactures a componont used in aircraft radar system the firms fixed cost are $ 3,000,000 per year Delta variable cost of each componont is $ 3,000 and it sell the componont for $5,000 each the company sold 2000 components during the year

A compute break even point in unit

B the sales manager believes that a reduction in sale price to $ 4,500 will result in order of 1,000 more componets each year in the comparisim with last year will the company benfit if changing the price show your calculation

Explanation / Answer

breakeven point =1500

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