Heister Corporation produces class rings to sell to college and high school students. These rings sell for $75 each, and cost $35 each to produce. Heister has fixed costs of $50,000.
a) Calculate Heister’s break-even point.
b) How much profit (loss) will Heister have if it sells 1,000 rings? 8,000 rings?
c) Heister’s president, J. R. D’Angelo, expects an annual profit of $100,000. How many rings must be sold to attain this profit?