break-even analysis ms 13-1 BREAK-EVEN ANALYSIS A company's fixed operating costs are $430,000, its variable costs...

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break-even analysis

ms 13-1 BREAK-EVEN ANALYSIS A companys fixed operating costs are $430,000, its variable costs are $2.95 per unit, and the pr

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Answer 1

Answer #1

Answer:

Selling Price per unit = $4.50

Variable Cost per unit = $2.95

Contribution Margin per unit = Selling price per unit – Variable Cost per unit
Contribution Margin per unit = $4.50 - $2.95
Contribution Margin per unit = $1.55

Break Even Point in Units = Fixed Cost / Contribution Margin per unit
Break Even Point in Units = $430,000 / $1.55
Break Even Point in Units = 277,419.35 units

Therefore, breakeven point in unit sales is 277,419 or 277,420 units

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Answer 2

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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...

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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...

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