ZuoTi.Pro
Question

Radison Enterprises sells a product for $98 per unit. The variable cost is $50 per unit,...

Radison Enterprises sells a product for $98 per unit. The variable cost is $50 per unit, while fixed costs are $387,072.

Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $106 per unit.

a. Break-even point in sales units units
b. Break-even point if the selling price were increased to $106 per unit units
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

>> Break even point in sales units = ( Fixed cost ) / Contribution margin per unit.

>> Contribution margin per unit = Selling price - Variable cost per unit.

>> Contribution margin per unit = $ 98 - $ 50 = $ 48.

>> Break even point in sales units = $ 387,072 / $ 48 = 8,064.

___________________________________________________________________________________________

>> New Contribution margin per unit = $ 106 - $ 50 = $ 56.

>> New Break even point in sales units = $ 387,072 / $ 56 = 6,912.

____________________________________________________________________________________________

0 0
Add a comment
Answer #2

SOLUTION :


a.



Contribution margin per unit (UCM) = SP - UVC = 98 - 50 = 48 ($)


BEP (units) = FC / UCM = 387072 / 48 = 8064 units (ANSWER)





b.


If SP = $106 :


Contribution margin per unit (UCM) = SP - UVC = 106 - 50 = 56 ($)


BEP (units) = FC / UCM = 387072 / 56 = 6912 units (ANSWER)

answered by: Tulsiram Garg
0 0
Add a comment
Know the answer?
Add Answer to:
Radison Enterprises sells a product for $98 per unit. The variable cost is $50 per unit,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Radison Enterprises sells a product for $108 per unit. The variable cost is $56 per unit,...

    Radison Enterprises sells a product for $108 per unit. The variable cost is $56 per unit, while fixed costs are $1,297,920. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $116 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $116 per unit units

  • Radison Enterprises sells a product for $45 per unit. The variable cost is $21 per unit,...

    Radison Enterprises sells a product for $45 per unit. The variable cost is $21 per unit, while fixed costs are $138,240. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $51 per unit. units a. Break-even point in sales units b. Break-even point if the selling price were increased to $51 per unit no price were increased to si per unit unter units

  • Break-Even Point Radison Enterprises sells a product for $113 per unit. The variable cost is $66...

    Break-Even Point Radison Enterprises sells a product for $113 per unit. The variable cost is $66 per unit, while fixed costs are $351,231 Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $119 per unit a. Break-even point in sales units b. Break-even point if the selling price were increased to $119 per unit units units

  • Break-Even Point Radison Enterprises sells a product for $68 per unit. The variable cost is $41...

    Break-Even Point Radison Enterprises sells a product for $68 per unit. The variable cost is $41 per unit, while fixed costs are $99,144. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $75 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $75 per unit units

  • TURTLEADSIM SUSSIONLocator &progress=false Calculator Break-Even Point Radison Enterprises sells a product for $90 per unit. The...

    TURTLEADSIM SUSSIONLocator &progress=false Calculator Break-Even Point Radison Enterprises sells a product for $90 per unit. The variable cost is $50 per unit, while fixed costs are $288,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $95 per unit a. Break-even point in sales units b. Break-even point if the selling price were increased to $95 per unit units units Previous Next > All work saved. Submit Test for...

  • 1. Break-Even Point Radison Inc. sells a product for $97 per unit. The variable cost is...

    1. Break-Even Point Radison Inc. sells a product for $97 per unit. The variable cost is $52 per unit, while fixed costs are $516,375. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $103 per unit. a. Break-even point in sales units    ? units b. Break-even point if the selling price were increased to $103 per unit ? units 2. Outdoors Company sells a product for $150 per...

  • Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable cost is $28...

    Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable cost is $28 per unit, while fixed costs are $228,690. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $70 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $70 per unit units Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable...

  • Break-Even Point Hilton Enterprises sells a product for $119 per unit. The variable cost is $68...

    Break-Even Point Hilton Enterprises sells a product for $119 per unit. The variable cost is $68 per unit, while fixed costs are $436,968. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $124 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $124 per unit units reak-Even Point Hilton Enterprises sells a product for $119 per unit. The variable...

  • Nicolas Enterprises sells a product for $59 per unit. The variable cost is $30 per unit,...

    Nicolas Enterprises sells a product for $59 per unit. The variable cost is $30 per unit, while fixed costs are $114,376. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $64 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $64 per unit units

  • Hilton Enterprises sells a product for $42 per unit. The variable cost is $29 per unit,...

    Hilton Enterprises sells a product for $42 per unit. The variable cost is $29 per unit, while fixed costs are $27,040. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $49 per unit. a. Break-even point in sales units units b. Break-even point if the selling price were increased to $49 per unit units

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT