Given the assumptions below about the manufacture of Barbie dolls, answer the following two questions:
• How many Barbie dolls does Mattel need to sell to breakeven?
• If Mattel sells 725,000 Barbie dolls how much of a profit or loss will the company generate?
Fixed costs attributable to Barbie are $1,500,000
The variable cost of producing each doll is $1.25.
Average wholesale selling price of a Barbie doll is $3.75.
(Do not consider any other Mattel product or any facts not presented here)