Question 1
Raider Corporation made $130 000 in sales last year. They had fixed costs of $29 300 and variable costs of $26 000. What is the breakeven point if their capacity is at $160 000? Provide algebraic statements of the revenue and cost functions, as well as a breakeven point in sales dollars.Question 2
A new smartphone is being sold by Motorola at $650. The fixed cost per month to make these phones is $840 000 and the variable cost per phone is $150. Determine the breakeven volume for Motorola using the contribution margin approach.Answer 1
TR = 1 × XAnswer 2
Fixed cost = $840 000; Selling price per unit = $650; Variable cost per unit = $150; Contribution margin per unit = 650 - 150 = 500