# Break even Analysis A division of Carter Enterprises produces &ldqu...

## Question

Break even Analysis A division of Carter Enterprises produces “Personal Income Tax” diaries. Each diary sells for \$8. The monthly fixed costs incurred by the division are \$25,000, and the variable cost of producing each diary is \$3.

a. Find the break-even point for the division
b. What should be the level of sales in order for the division to realize a 15% profit over the cost of making the diaries?

## Solution Preview

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(a) According to the problem

Total Cost = 3x + 25000...

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