5. Cost-Volume-Profit-Analysis

Pattigan’s Planes produces model airplanes which sell for \$50 each. If Pattigan’s Planes has \$50,000 in fixed costs and pays \$30 in variable costs per unit, what is Pattigan’s Planes’ break-even point?

If Pattigan’s Planes, a model airplane company, produces an output that is above their estimated break-even point, we would expect them to have: