Given: The Dowell Company produces and sells brooms. Their present sales volume is 500Kpa., and each broom sells for 0.5$.
Required: If their fixed expenses are 80K$pa. And unit variable cost is 0.3$, calculate the following:
a) The total profit for the year, and the break-even point amount.
b) The new profit if both the fixed costs, and the sales volume increase by 10%,
c) Starting with the values in the given paragraph, what would the new break-even point quantity be, if there was a 10% increase in the selling price, and a 20K$ increase in fixed expenses.