Break-even revenues in dollars?
If prices are reduced by 10%, what unit sales volume will be needed to yield a net profit before tax of $200,000?
Given the following:
Total unit sales volume Price per unit Total revenues Total fixed expenses Total variable expenses Net profit before tax
250,000 $10.00 $2,500,000.00 $1,300,000.00 $750,000.00 $450,000.00
Please calculate (5 points each):
1. Break-even revenues (in dollars)
2. If prices are reduced by 10%, what unit sales volume will be needed to yield a net profit before tax of $200,000?
