A running shoe manufacturer has a fixed overhead of $ 580000.00, variable costs of $ 50.00, and a selling price of $ 100.00. (c) Smallest number of pairs of shoes the company must sell to turn a profit:

(d) Total profit

To make a profit the company must sell 11601 units.

Step-by-step explanation:

Giving the following information:

Fixed costs=$580,000

Unitary variable costs= $50

Unitary selling price= $100

First, we need to calculate the break-even point in units:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 580,000 / (100 - 50)

Break-even point in units= 11,600 units

To make a profit the company must sell 11601 units.

In order to determine the total profit, you need to use the following formula:

Total profit= 50*x - 580,000

x= units sold

For example:

x= 15,000

Total profit= 50*15,000 - 580,000

Total profit= $170,000

a

step-by-step explanation: