Note: capacity is 30,000 and the company is only 80% which means 24,000 devices

Question

Note: capacity is 30,000 and the company is only 80% which means 24,000 devices A) $72,000 B) 20,000 units C) I can't figure out
Shosmere Electronics has the capacity to produce 30,000 networking devices per year at a plant in Holland. Their variable costs are $12 per unit. They are currently operating at S0 percent of plant capacity, which generates a revenue of $720,000 per year. At current volume, the fixed costs are $360,000. (a) What is the current annual profit or loss? b) What is the break-even quantity? (b) What is the break-even quantity? (c) What would be the firm's profit if they could operate at 95 percent of capacity?

Explanation / Answer

Note: capacity is 30,000 and the company is only 80% which means 24,000 devices

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