Homework Answers
| (1)-Break even point in unit sales |
| Break even point in unit sales = $3,000 / ($14 - $11) |
| Break even point in unit sales = $3,000 / $3 |
| Break even point in unit sales = 1,000 units |
| (2)-Break even point in dollar sales |
| Break even point in dollar sales = 1,000 units x $14 |
| Break even point in dollar sales = $14,000 |
| (3)-Break even point in unit sales |
| Break even point in unit sales = ($3,000 + $600) / ($14 - $11) |
| Break even point in unit sales = $3,600 / $3 |
| Break even point in unit sales = 1,200 units |
| (3)-Break even point in dollar sales |
| Break even point in dollar sales = 1,200 units x $14 |
| Break even point in dollar sales = $16,800 |
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