Table of Contents I. INTRODUCTION 2 II. STATEMENT OF PROBLEM 2 III. OBJECTIVES 3 IV. SCENARIOS 3 Question 1 5 Question 2 7 Question 3 10 Question 4 12 Question 5 13 Question 6 14 Question 7 16 V. CONCLUSION 18 Bibliography 19

INTRODUCTION

The case is about manufacturing company, Hospital Supply, Inc., that produced hydraulic hoists for the local market. The hydraulic hoist is useful to the hospital for moving bedridden patients. Most of sales made to local hospitals. Significant to activity of sales and production of hydraulic hoist, there are costs incurred due to the consumption of resources. Presented in Exhibit 1 are the costs of manufacturing and marketing hydraulic hoists at …show more content…

In other word, the break-even point for a product is the point where total revenue received equals the total costs associated with the sale of the product (TR = TC). A break-even point is typically calculated in order for businesses to analyze the potential profitability of a product in a sales-based business. Exhibit 2 – Break-even Equation
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