Voellers Upholstery Co. produces inexpensive leather chairs. The average selling price for one of the chairs is
$400. The variable cost per chair is $250. Voellers has average fixed costs per year of $450,000.
a. What is the break-even point in units?
b. What is the break-even point in dollar sales?
c. What would be the operating profit or loss associated with the production and sale of
(1 ) 3,000 chairs, (2 ) 4,000 chairs?
a. QBE = $450,000/($400-$
Business
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