Company use absorption costs approach for its sales and cost analysis
what is break even point/revenue? No beginning inventories so the production equals the sales volume, Variable and fixed cost are all manufacturing costs
BUDGET | Apple | Strawberry |
Selling price | 5.00 | 5.50 |
Variable cost | 2.70 | 2.90 |
Fixed cost | 9,000 | 4,500 |
Sales Volume | 25,000 | 10,000 |
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Calculation of break even point/revenue: | |||
BUDGET | Apple | Strawberry | Note |
Selling price | 5.00 | 5.50 | A |
Variable cost | 2.70 | 2.90 | B |
Contribution per unit | 2.30 | 2.60 | C=A-B |
Fixed cost | 9,000.00 | 4,500.00 | D |
Break even point (units) | 3,913.04 | 1,730.77 | E=D/C |
Break even point ($) | 19,565.22 | 9,519.23 | F=E*A |
Company use absorption costs approach for its sales and cost analysis what is break even point/revenue?...
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break-even analysis
ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the product's sales price is $4.50. What is the company's break-even point; that is, at what unit sales volume will its income equal its costs?
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Sales Mix and Break-Even
Analysis
Conley Company has fixed costs of $17,802,000.
The unit selling price, variable cost per unit, and
contribution margin per unit
for the company’s two products follow:
Product Model
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Yankee
$180
$99
$81
Zoro
225
135
90
The sales mix for products Yankee and Zoro is 80% and 20%,
respectively. Determine the break-even point in
units of Yankee and Zoro.
1 eBook Show Me How Sales...
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