Exercise #4: Break-Even Analysis Kavalec Industries has a product with a unit selling price of $500,...

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Exercise #4: Break-Even Analysis Kavalec Industries has a product with a unit selling price of $500, variable cost per unit o

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Answer 1

Answer #1

a) Break even point under equation method

Profit = Sales-Variable cost-Fixed cost

0 = 500x-240X-160000

X = 160000/260 = 615 Units

b) Break even unit = Fixed cost/Contribution margin per unit = 160000/(500-240) = 615 Units

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Answer 2

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Exercise #4: Break-Even Analysis Kavalec Industries has a product with a unit selling price of $500,...

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Exercise #4: Break-Even Analysis Kavalec Industries has a product with a unit selling price of $500,...

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