Heister Corporation produces class rings to sell to college and high school students. These rings sell for $75 each, and cost $30 each to produce. Heister has fixed costs of $45,000.
a) Calculate Heister's break-even point.
b) How much profit (loss) will Heister have if it sells 800 rings? 6,000 rings?
c) Heister's president, J. R. D'Angelo, expects an annual profit of $200,000. How many rings must be sold to attain this profit?

Question

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The Answer of Heister Corporation produces class rings to sell to college and high school students. These rings sell for $75 each, and cost $30 each to produce. Heister has fixed costs of $45,000.
a) Calculate Heister's break-even point.
b) How much profit (loss) will Heister have if it sells 800 rings? 6,000 rings?
c) Heister's president, J. R. D'Angelo, expects an annual profit of $200,000. How many rings must be sold to attain this profit?

Heister Corporation Produces Class Rings to Sell to College and High