An apparel manufacturing plant has estimated the variable cost to be $21 per unit. Fixed costs are $1M per year. Forty percent of its business is with one preferred customer and the customer is charged at cost(without profit). The remaining 60% of the business is with several differant customers and they are charged $40 per unit. Find. a. The break even volume for this job.
b. The unit cost if 100,000 units are made per year.
c. The annual profit for this quantity(100,000 units).

a. Break Even Profit = Fixed Cost / Contribution Per Unit

Fixed Cost = $1,000,000

Contribution Per Unit = 40 - 21 = $19 Per Unit

Break-even Profit = 1,000,000 / 19 = 52,631.57 Units

b. Unit Cost = $21 Per Unit

Applied Fixed Cost=  1,000,000 / 100,000 = $10 Per Unit

Total Cost = Unit cost + Applied fixed cost = $21 per unit + $10 per unit =  $31 Per Unit

c. Annual Profit:

Sales                                         $3,640,000

(60,000 x 40) (40,000 x 31)  

Less: Variable Cost                  $2,100,000

Less: Fixed Cost                       $1,000,000

Profit                                          $540,000

answer; /// the correct answer is (shared); /// good luck