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Part 1: Break-Even Analysis (Profit Model) Kramerica Industries has successfully completed production of its tip calculators

Part 2: Break Even Analysis (Multiproduct Model) West Side Deli is a local family-owned restaurant that has built up a reputa



rt 2: Break Fren Ansha (c) How can Kramerica use the volume break-even point value calculated in part (a)? NOTE The Excel spr

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Answer #1

A) Contribution margin per unit = Sales price per unit - Variable cost per unit

= 39 - 15 = 24 per unit

Volume Breakeven point = Fixed cost/Contribution margin per unit

= 850,000/24

= 35,417 units

B) Contribution margin ratio = Contribution margin per unit/Sales price per unit

= 24/39 = 61.54%

Revenue Breakeven point = Fixed cost/Contribution margin ratio

= 850,000/61.54%

= $1,381,215
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