Xander has an exclusive deal with Elite Spa and Casino to sell handbags. The average selling price is $510 per bag. Average variable costs (purchase price of bags plus freight costs and selling expenses) amounts to $250 per bag. Xander’s fixed costs equal $1,475,000 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 $252,000 operating profit: Answer
Earn operating profit equal to 25% of total sales.
