... month. The variable cost per shoe is $50. The shoes are sold at $80 each.
Required:
a. What is the break-even point for shoes for a month in units and dollars?
b. Jasper Ltd expects to sell 500 shoes. The business has opportunity to rent a shoe making machine. Doing so will increase the total fixed costs by $1 500 per month. The machine would reduce the variable cost per shoe to $40.
c. Assuming 500 shoes are going to be sold, how much profit would the business make if:
i) the machine is not rented
ii) the machine is rented