Simspon has an exclusive deal with Elite Spa and Casino to sell handbags. The average selling price is $460 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $200 per bag. Simspon’s fixed costs equal $1,728,000 per year.
Do not enter dollar signs or commas in the input boxes.
Round all answers up to the nearest whole unit.
Calculate the number of units needed to:
Break-even: Answer
Earn $251,000 operating profit: Answer
Earn operating profit equal to 22% of total sales: Answer
