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Homework answers / question archive / 1) Calculate the break-even point in units and dollars [chapter 4, text} " a 2) Plot a Break-Even Chait 7 Ng Total Per Unit Perediina Sales (1000 units) a - “$50
1) Calculate the break-even point in units and dollars [chapter 4, text} " a
2) Plot a Break-Even Chait 7 Ng
Total Per Unit Perediina
Sales (1000 units) a - “$50.00 $50 a
Less: Variable costs 20,000 20 0
Contribution Margin 30.000 w *
Less: Fixed costs * 38,000
"| Net Income 5.000 . s .
1) Computation of Breakeven Point in Units and Dollars:
Break even point in dollars = Fixed cost / Contribution margin = 25,000 / 60% = $ 41,667
Break even point in units = Break even point in dollar / Sale price per unit = 41,667 / 50 = 833.33 or 833 units
Table for plot
|
Q |
Sale Value |
Contribution |
Fixed costs |
|
S = 50 x Q |
C = 60% x S |
FC |
|
| - | - | - | 25,000 |
| 300 | 15,000 | 9,000 | 25,000 |
| 600 | 30,000 | 18,000 | 25,000 |
| 900 | 45,000 | 27,000 | 25,000 |
| 1,200 | 60,000 | 36,000 | 25,000 |
