0 (In) = SX – VX – F In = Net Income S = Selling Price...

Question

Question

0 (In) = SX – VX – F In = Net Income S = Selling Price...

0 (In) = SX – VX – F

In = Net Income
S = Selling Price
X = Units Sold
V = Variable Costs Per Unit
F = Total Fixed Costs
SX = Total Revenue
VX = Total Variable Costs

Based on the original equation, find the equation for: Total Fixed Costs at Break-Even

F= ?

		V = SX – FX
		F = SX – VX
		V = SX – FS
		V = FX – FV

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

The equation for Total fixed cost at break even point will be 'F = SX - VX' .

Here, F stands for Total fixed cost, SX stands for Total Revenue, VX stands for Total Variable Cost.

At the break even point total cost and total revenue are equal to the fixed cost. There is no variable cost involved.

Hence, this equation is correct.

Add a comment

Answer 2

Similar Homework Help Questions

0 (In) = SX – VX – F In = Net Income S = Selling Price...

0 (In) = SX – VX – F In = Net Income S = Selling Price X = Units Sold V = Variable Costs Per Unit F = Total Fixed Costs SX = Total Revenue VX = Total Variable Costs Based on the original equation, find the equation for: Units Sold at Break-Even X= ?
Can someone please explain where did the 270,000 net income and 45000 units at price 58...

Can someone please explain where did the 270,000 net income and 45000 units at price 58 came from. I read the explanation but didnt find it helpful at all. Thank you. Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company's present selling price is $70 per unit, and...
how do you find net income for these 4? Exercise 6-13 Changes in Selling Price, Sales...

how do you find net income for these 4? Exercise 6-13 Changes in Selling Price, Sales Volume, Variable Cost per Unit, and Total Fixed Costs [LO6-1, LO6-4] Miller Company's contribution format income statement for the most recent month is shown below: Sales (39,000 units) Variable expenses Contribution margin Fixed expenses Net operating income Total $ 312,000 195,000 117,000 44,000 $ 73,000 Per Unit $8.00 5.00 $3.00 Required: (Consider each case independently): 1. What is the revised net operating income if...

9. Oriole Company has the following information available for September 2020. Unit selling price of video...

9. Oriole Company has the following information available for September 2020. Unit selling price of video game consoles $420 Unit variable costs $252 Total fixed costs $63,840 Units sold 600 Compute the unit contribution margin. Unit contribution margin________ Prepare a CVP income statement that shows both total and per unit amounts. Compute Oriole’ break-even point in units. Break-even point in units_______ Prepare a CVP income statement for the break-even point that shows both total and per unit amounts. 10. Carla...
Billings Company has the following information available for September 2017. Unit selling price of video game...

Billings Company has the following information available for September 2017. Unit selling price of video game consoles Unit variable costs Total fixed costs Units sold $520 $364 $70,200 780 Compute the unit contribution margin. Unit contribution margin Prepare a CVP income statement that shows both total and per unit amounts. BILLINGS COMPANY CVP Income Statement Total Per Unit e Textbook and Media Compute Billings' break-even point in units. Break-even point in units units Billings Company has the following information available...
Problem 18-6A Analysis of price, cost, and volume changes for contribution margin and net income P2...

Problem 18-6A Analysis of price, cost, and volume changes for contribution margin and net income P2 @ A1 This year Burchard Company sold 40,000 units of its only product for $25 per unit. Manufacturing and selling the product required $200,000 of fixed manufacturing costs and $325,000 of fixed selling and administrative costs. Its per unit variable costs follow. Material Direct labor (paid on the basis of completed units) Variable overhead costs Variable selling and administrative costs $8.00 5.00 1.00 Next...

Assume that a company has forecasted 5,800 units sold, has an average selling price of $25.00...

Assume that a company has forecasted 5,800 units sold, has an average selling price of $25.00 per unit, unit variable cost of $10.00 per unit, and a total fixed cost equal to $84,000. Using the template provided, perform the following analyses: a. Create a Contribution-format Income Statement based on the forecasted data b. Create a Contribution-format Income Statement based on the Break-even Sales Volume c. Create a Contribution-format Income Statement based on a target profit equal to $6,000 INCOME STATEMENTS...
Marlin Motors sells a single product with a selling price of $490 with variable costs per...

Marlin Motors sells a single product with a selling price of $490 with variable costs per unit of $196. The company's monthly fixed expenses are $52,920. C. Prepare a contribution margin income statement for the month of November when they will sell 140 units. Use a minus sign for a net loss if present. Income Statement Sales $ Variable Costs Contribution Margin $ Fixed Costs Net Loss $ D. How many units will Marlin need to sell in order to...
Narchie sells a single product for $50. Variable costs are 60% of the selling price, and...

Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. Narchie: ______ A) will break-even by selling 20,000 units. B) will break-even by selling 13,333 units. C) will break-even by selling 8,000 units. D) will break-even by selling 1,000,000 units. E) cannot break-even because it loses money on every unit sold.

Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of...

Handy Home sells windows and doors in the ratio of 7:3 (windows:doors). The selling price of each window is $105 and of each door is $255. The variable cost of a window is $65.00 and of a door is $177.50. Fixed costs are $640,625. (Enter your "per unit" values in two decimal places.) (1) Determine the selling price per composite unit. Quantity Selling Price per unit Total per composite unit Windows Doors (2) Determine the variable costs per composite unit....

0 (In) = SX – VX – F In = Net Income S = Selling Price...

Homework Answers