Basic Decision Analysis Using CVP
Balance, Inc., is considering the introduction of a new energy snack with the following price and cost characteristics:
Sales price |
$ 1.00 per unit |
Variable costs |
0.20 per unit |
Fixed costs |
400,000 per month |
Required
a. What number must Balance sell per month to break even?
b. What number must Balance sell per month to make an operating profit of $100,000?