Homework Answers
| case | accounting break even | cash break even |
| 1 | 18,992.59 | 13,511.11 |
| 2 | 6,423.73 | 830.51 |
| 3 | 204.09 | 159.09 |
working:
accounting break even point = (fixed cost + depreciation) / (unit price - variable cost)
cash break even point = (fixed cost) / (unit price - variable cost)
case 1.
abep = (9120000+3700000) / (3310-2635)
=>18,992.59.
cbep = (9120000)/(3310-2635)
=>13,511.11.
case 2:
abep = (49000+330000) / (136-77)
=>6,423.73.
cbep = (49,000) / (136-77)
=>830.51.
case 3:
abep = (3500+990) / (29-7)
=>204.09
cbep = 3500/22
=>159.09.
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in calculating the cash break-even. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
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At least one of these answers are wrong (probably more). Please
help me correct this problem.
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.) Case Unit Price 1 $ 3,310 2 136 Unit Variable Cost $ 2,635 77 7 Fixed Costs $ 9,120,000 49,000 3,500 Depreciation $3,700,000 330,000 990 3...
In each of the following cases, calculate the accounting
break-even and the cash break-even points. Ignore any tax effects
in calculating the cash break-even. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
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