Calculate Break Even Point for:
Lane 1:
Lane 2:
Lane 3:
Calculate profit loss for:
Lane 1:
Lane 2:
Lane 3:
Should Sam operate at one, two or three lanes?
Required a : | |
Contribution margin per unit = Selling price per unit - Variable cost per unit = 8 - 4 | 4 |
Break even point [ Total fixed costs / Contribution margin per unit ] |
|
Lane 1 : [ 21000 / 4 ] | 5250 |
Lane 2 : [ 31000 / 4 ] | 7750 |
Lane 3 : [ 36000 / 4 ] | 9000 |
Required b-1 : | |
Profit (Loss) [ ( Maximum units - Break even point ) * Contribution margin per unit ] |
|
Lane 1 : [ ( 5000 - 5250 ) * 4 ] | -1000 |
Lane 2 : [ ( 8000 - 7750 ) * 4 ] | 1000 |
Lane 3 : [ ( 10000 - 9000 ) * 4 ] | 4000 |
Calculate b-2 : |
Should Sam operate at one, two or three lanes? |
Answer : 3 Lanes |
Calculate Break Even Point for: Lane 1: Lane 2: Lane 3: Calculate profit loss for: Lane...
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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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