Business
04.05.2021 23:51
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Kid’s corner sells lamp systems for $25. these systems use leds to create a light
Kid’s corner sells lamp systems for $25. these systems use leds to create a light display across walls or ceilings. kid’s corner pays $13 for the systems. fixed costs incurred by the company are $18,000. a. what is the breakeven point in units? b. if kid’s corner wishes to earn $10,000 in operating income, how many systems will it have to sell?
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ValeriaVironche953
4,7(27 marks)
a. Breakeven point: 1,500 units.
b. Kid´s Corner would have to sell 2,333.33 units to earn $10,000 in operative income.
Explanation:
a. breakeven point in units
breakeven point= 
b. Operating income = Total revenue - direct costs-indirect costs
$10,000=$25*X-$13*X- 18,000
Where X is the amount of units to sell
Isolating X from the equation, we have:
12X=28,000
X=28,000/12
X= 2,333.33
lorry8488
5,0(25 marks)
A retirement plan!?!?!!
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