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Download The Hartnett Corporation manufactures baseball bats
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The Hartnett Corporation manufactures baseball bats with Sammy Sosa’s autograph stamped on them. Each bat sells for $13 and has a variable cost of $8. There is $20,000 in fixed costs involved in the production process. a. Compute the break-even point in units. Selling price per item= $ 13 Variable cost per bat= $ 8 Contribution margin= 5 Fixed cost…………= 20,000 Breakeven Units=20,000/5= 4,000 b. Find the sales (in units) needed to earn a profit of $15,000 (how do you find the sales in units to earn profits of 15,000?) Do you increase the selling price or decrease the VC? The problem below is a sample problem, can you please walk me through this step by step? Therapeutic Systems sells its products for $8 per unit. It has the following costs: Rent $120,000 Factory labor $1.50 per unit Executive salaries $112,000 Raw material $.70 per unit Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $6, compute the break-even point.
