The Atlantic Company sells a product with a break-even point of 5,862 sales units. The variable...
The Atlantic Company sells a product with a break-even point of 5,862 sales units. The variable cost is $84 per unit, and fixed costs are $199,308.
Determine the unit sales price. Round answer to nearest whole
number.
$
Determine the break-even points in sales units if the company
desires a target profit of $50,048. Round answer to the nearest
whole number.
units
Homework Answers
1.At breakeven;Contribution=Fixed cost=$199308
Contribution/unit=(199308/5862)=$34
Contribution=Sales-Variable cost
Hence unit sale price=(34+84)=$118
2.The breakeven point would not change with change in target profits
Hence breakeve value=(5862*118)=$691716.
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