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The Freud Company produces engine values for trucks

Author:
January 2nd, 2018

The Freud Company produces engine values for trucks, cars, and motor bikes. The company currently sells 1,200 truck values at $10.00 each. They have a variable cost of production of $7.00. They sell 1,800 car values for $8.00 and have a variable cost of $6.00. Motor bike values are not as much in demand and they sell 1,000 for $7.00 each and have a variable cost of $5.00. The company has total fixed costs of $10,000.00. How many values must the company sell to breakeven? How many truck values, car values, and motor bike values need to be sold? What is the dollar value of sales that must be made for the company to breakeven?

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