How do I find the number of visits using the break-even equation when I know the...
How do I find the number of visits using the break-even equation when I know the price per visit, the ariable costs per visit, the contribution margin, and the fixed costs. Here is one problem I am stuck on.
Price per visit - $70, variable cost per visit - $20, contribution margin - $250,000, and fixed costs - $130,000. I must find the number of visits and the net income.
Homework Answers
Break Even Visits = Fixed Cost / ( Sales Per Unit - Variable Cost Per Unit )
= $ 130,000 / ( $ 70 - $ 20)
= 2,600 Visits
Hence the correct answer is 2,600 Visits
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Chillmax Company plans to sell 3,500 pairs of shoes at $60
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Break-Even Point in Units
Chillmax Company plans to sell 3,500 pairs of shoes at $60
each in the coming year. Variable cost is 35% of the sales price;
contribution margin is 65% of the sales price. Total fixed cost
equals $78,000 (includes fixed factory overhead and fixed selling
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Required:
1. Calculate the sales revenue that Chillmax must make to
break even by using the break-even point in sales equation. $
2. Prepare a contribution margin income statement...
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