Griffin buys and sells ladies’ handbags. The average selling price is $490 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $230 per bag. Griffin’s fixed costs equal $1,472,000 per year. Calculate the number of units needed to:
break-even:
Earn $291,000 income:
Earn income equal to 21% of total sales:

Question

16-06-2024
Business

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Griffin buys and sells ladies’ handbags. The average selling price is $490 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $230 per bag. Griffin’s fixed costs equal $1,472,000 per year. Calculate the number of units needed to:
break-even:
Earn $291,000 income:
Earn income equal to 21% of total sales:

Sagot :

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