Question

I. A company sells a product which has a unit sales price of $10, unit variable cost of $5 and total fixed costs of $280,000. The number of units the company must sell to break even is: 2. At the breakeven point of 3.000 units, variable costs are $300,000, and fixed costs are S180,000. How much is the selling price per unit? 3. A company has total fixed costs of $160,000 and a contribution margin ratio of 20%. The total sales necessary to breakeven are: 4.XYZ Company manufactures GPS. The selling price of each GPS id $250, variable cost $25, and fixed costs are $2,500,000. Calculate the following: a. contribution margin b. breakeven point in units c. breakeven level of sales

Answer 1

- o contribution margin per unit is selling price variable cost per unit $10 - 5 - 5: Break even point Cunits) = fixed cost contribution lunit $ 280000 $5 56000 units 3000 units Given Break even point Cunits) = _180000_ 3000 units contribution lunit Contributin lunit = $60_ Variable costs are $300000 - 100. 300000 gooo $160 Selling price > 560 +$100 = 3 sales (dollars) Break even - Fixed costs contribution perentage $160000 207. $ 800000 Q contributim unit - $250 – $25 - $225. Percentage of contribution - 225x120 90% B.E.P.unit) $2500 000 = 11,01 unit 225 R.E.D (dollars) $2500000 = 2777778/- 90%.