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A sporting goods manufacturer lost $400,000 on sales of $3 million in a year during the last ...

A sporting goods manufacturer lost $400,000 on sales of $3 million in a year during the last recession. The production lines operated at only 60% of capacity during the year. Variable costs represent one-third of the sales dollars. a) At what percent of capacity must the firm operate in order to break even? b) To the nearest dollar, what would its net income be at 80% of capacity? c) What dollar sales would generate a net income of $700,000?

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Business Mathematics in Canada

Edition: 11^th

Authors: Jerome, Worswick

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Thanks

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