Goran Industries sells its product for $75 per unit. The variable cost per unit for the product is $55. Goran’s fixed cost is $5,000,000.
Required:
a)Determine Goran’s breakeven point in revenues.
b)Determine the operating income, if Goran sold 240,000 units.
c)Explain if Goran Industries should be concerned about the long-run success of the business. If management is concerned, what strategies might they consider?