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Homework answers / question archive / Complete the following problems using the following ratios: Sales level at which operating income is zero If sales above breakeven, then profit If sales below breakeven, then loss Fixed expenses = total contribution margin Total sales = total expenses Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio (1) Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit

Complete the following problems using the following ratios:

- Sales level at which operating income is zero
- If sales above breakeven, then profit
- If sales below breakeven, then loss
- Fixed expenses = total contribution margin
- Total sales = total expenses

Break Even Point: Unit Sold = Fixed expenses + Operating Income / Contribution Margin per unit

Break Even Point: Sales $ = Fixed expenses + Operating Income / Contribution Margin Ratio

(1) Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $14 per unit.

(2) Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%.

(3) Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit.

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