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Lada Lada
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The Excellent DVD Company sells DVDs for $62 each. Manufacturing cost is $22.70 per DVD; marketing costs are $7.75 per DVD; and royalty payments are 15% of the selling price. The fixed cost of preparing the DVDs is $227 300. Capacity is 20 000 DVDs.
a) Draw a detailed break-even chart.
b) Compute the break-even point
   (i) in units;
   (ii) in dollars;
   (iii) as a percent of capacity.
c) Determine the break-even point in units if fixed costs are increased by $3300 while manufacturing cost is reduced $1.65 per DVD.
d) Determine the break-even point in units if the selling price is increased by 10% while fixed costs are increased by $2900.
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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