Homework Answers
Solution
| a | Sales volume | 18,000 | Units |
| b | Sales volume | 21,000 | Units |
| c | Sales volume | 29,200 | Units |
Working
| Requirement a Working | ||
| A | Sale Price per unit | $ 50.00 |
| B | Variable Cost per Unit | $ 30.00 |
| C=A x B | Unit Contribution | $ 20.00 |
| D | Total Fixed cost | $ 360,000.00 |
| E=D/C | Breakeven point in units | 18,000 |
.
| Requirement b Working | ||
| A | Sale Price per unit | $ 50.00 |
| B | Variable Cost per Unit | $ 30.00 |
| C=A x B | Unit Contribution | $ 20.00 |
| D | Total Fixed cost + desired profit | $ 420,000.00 |
| E=D/C | Units to be sold | 21,000 |
.
| Requirement c Working | ||
| A | Sale Price per unit | $ 45.00 |
| B | Variable Cost per Unit | $ 30.00 |
| C=A x B | Unit Contribution | $ 15.00 |
| D | Total Fixed cost + desired profit | $ 438,000.00 |
| E=D/C | Units to be sold | 29,200 |
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