Wednesday, October 12, 2011

15-2A. (Break-even point) Napa Valley Winery (NVW) is a boutique winery that produces a high-quality, nonalcoholic red wine from organically grown

FINANCE

15-2A. (Break-even point) Napa Valley Winery (NVW) is a boutique winery that produces a high-quality, nonalcoholic red wine from organically grown cabernet sauvignon grapes. It sells each bottle for $30. NVW’s chief financial officer, Jackie Cheng, has estimated variable costs to be 70 percent of sales. If NVW’s fixed costs are $360,000, how many bottles of its wine must NVW sell to break even?

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