Question

In each of the following cases, find the unknown variable. Ignore taxes. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)

Accounting Break-Even			Unit Price			Unit Variable Cost			Fixed Costs			Depreciation
18,000			$	42		$	22		$	250,000		$
128,000							42			4,200,000			920,000
7,600				75						300,000			80,000

Answer 1

AccountingBreak-Even=(Fixed cost+Depreciation)/(Unit price-Unit Variable cost)

1.

18000=(250,000+Depreciation)/(42-22)

18000*20=250,000+Depreciation

Depreciation=360,000-250,000

=$110,000.

2.

128000=(4,200,000+920000)/(Unit price-42)

128000*(Unit price-42)=5,120,000

Unit price-42=(5,120,000/128000)

Unit price=40+42

=$82

3.

7600=(300,000+80,000)/(75-Variable cost)

7600*(75-Variable cost)=380,000

75-Variable cost=(380,000/7600)

Variable cost=75-50

=$25