Pace Tech Engineering Inc manufactures an electronic toy. The company has a buil

Question

Pace Tech Engineering Inc manufactures an electronic toy. The company has a building with a floor area of 180,000 square feet for both the manufacturing and warehousing operations. The company produces all of the components that go into the toy. Variable costs are estimated to be $20 per unit, and fixed costs per year are $10,875. The selling price per unit is $39. 3. The breakeven quantity for the item assembled in the plant is ___________. A) 544 B) 279 C) 572 D) 434 4. The profit made by the company, if it sold 1,000 units in a year is ___________. A) $39,000 B) $9,875 C) $29,875 D) $8,125 5. Determine the number of units/year required to be sold to make a profit of $25,000. A) 1,625 B) 641 C) 1, 889 D) 1,429

Explanation / Answer

C) 572 units per year A) $39000 c) 1,889

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