Question

How do I calculate the breakeven point in this problem?

4. How many Striders do you need to sell at $42 to break even? Units Sold Unit Price Revenue 10,000 $ 42.00 $ 420,000.00 Fixe

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Break-even point (in units) = fixed costs / contribution margin per unit

Contribution margin per unit = unit price – unit variable cost = 42-15 = $27

Break-even point (in units) = 11500/27 = 426 striders

Add a comment
Know the answer?
Add Answer to:
How do I calculate the breakeven point in this problem? 4. How many Striders do you...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point...

    Activity 13.3 - Price Calculation – Breakeven Pricing Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following two examples to gain a better understanding of this approach. Fixed Costs = $10,000 Variable Costs = $10 Using break-even analysis calculate: 1. How many units need to be sold to...

  • Show All Your Works How You Do It: Calculate the new breakeven point in Requirement GigaCo...

    Show All Your Works How You Do It: Calculate the new breakeven point in Requirement GigaCo Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: Requirements -X Data Table 20.00 Sales price per unit: (current monthly sales volume is 120,000 units) .... $ Variable costs per unit: Direct materials ...........$ 740 1. What is the company's contribution...

  • 10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for sale in hardware stores across...

    10. MULTIPLE PRODUCT BREAKEVEN POINT. Angus Manufacturing makes basic tools for sale in hardware stores across the country. It is a successful business, with the following unit sales in a month. It faces fixed costs of $225,000 per month. Angus wants you to help him understand how his product mix affects his business. Angus Manufacturing Price per Unit Variable Cost per Unit Product Units Sold Hammers Socket wrenches Plain screwdriver Phillips-head screwdriver Pliers $10 $7.50 25,000 $25 $15.00 10,000 $8...

  • Breakeven Analysis in Units and Dollars SES. How many units must Queens Company sell to break...

    Breakeven Analysis in Units and Dollars SES. How many units must Queens Company sell to break even if the selling price per unit is $9, variable costs are $5 per unit, and fixed costs are $6,000? What is the break- even point in total dollars of sales? 04

  • Often a firm will calculate the break-even point for a price. That is, if we set...

    Often a firm will calculate the break-even point for a price. That is, if we set the price at $X, then how many units will we need to sell to cover costs (that is, our break-even point). Work through the following data and questions to gain a better understanding of this approach. QUESTIONS Start by completing the table below under the assumption that the product will be sold for $20. (It will be easiest to use Excel to complete the...

  • Question Help Breakeven point- Algebraic Kate Rowland wishes to estimate the number of flower arrangements she must...

    Question Help Breakeven point- Algebraic Kate Rowland wishes to estimate the number of flower arrangements she must sell at $25.31 to break even. She has estimated fixed operating costs of $12,840 per year and variable operating costs of $16.32 per arrangement. How many flower arrangements must Kate sell to break even on operating costs? The operating breakeven point is units. (Round to the nearest integer.)

  • 1. The most popular method of pricing is _____ pricing. a. breakeven b. incremental-cost c. cost-plus...

    1. The most popular method of pricing is _____ pricing. a. breakeven b. incremental-cost c. cost-plus d. full-cost 2. Prestige pricing objectives emphasize: a. cost minimization. b. quality and exclusivity. c. revenue maximization. d. sales maximization. 3. Global Diamond manufactures jewelry. This firm is planning to introduce a new necklace and is trying to determine how many units it must sell in order to break even. Fixed costs are $100,000 and variable costs for each unit will be $20. At...

  • Applying the formula of the CVP/Breakeven point for a single selling point, calculate how many rooms the hotel GoodLuck...

    Applying the formula of the CVP/Breakeven point for a single selling point, calculate how many rooms the hotel GoodLuck needs to sell in order to achieve the owner's goal of a 72354 chf Net Income. The Hotel GoodLuck has a total estimated fixed cost of 1988370 chf, an average variable cost per room of 35.5 chf and an average daily rate of 227.4 chf. Only type the number with no units, no decimals and no thousands separators. Round up or...

  • ***If you are able to explain how you got the results it would really help me....

    ***If you are able to explain how you got the results it would really help me. Thank you!*** Which 1,379 pullidst UIULIS ult lju 1. Break-Even Calculations Compute the break-even point in units for each of the following indepen dent situations: Unit Selling Price $12.00 15.00 8.75 Unit Variable Cost $8.00 11.00 2.50 Total Fixed Cost $ 87,000 146,000 52,000 o so Using the break-even point in units, calculate the break-even point in revenue. Confirm the break-even point in revenue...

  • Please answer number 2 and 4. I appreciate you! . A company has annt fixed costs...

    Please answer number 2 and 4. I appreciate you! . A company has annt fixed costs of $2,000 per month and variable costs of S2 per unit produced. If the company charges $12 per unit for their product, what is the breakeven annual production quantity? Assume that the profit expected per month is $10,000, how many units should be sold per month? 2. A concrete mixer has been purchased to improve production in IE 2324 class. There are two operators...

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