Rice Company has a unit selling price of $690, variable costs per unit of $390, and...
Rice Company has a unit selling price of $690, variable costs per unit of $390, and fixed costs of $286,300. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin. (Round answers to 0 decimal places, e.g. 1,225.)
Whats the break even point a)mathematical equation: _________ units B) Unit contribution margin __________ units
Homework Answers
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A) At Breakeven sales Contribution margin - Fixed cost = 0 (690-390)*S - 286,300 = 0 300S = 286,300 Breakeven point = 286,300/300 = 954 units |
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B) Unit contribution margin = 690-390 = 300 Breakeven units = Fixed cost /Unit contribution margin = 286,300/300 = 954 units |
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Rice Company has a unit selling price of $690, variable costs
per unit of $390, and...
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Brief Exercise 18-08 Wildhorse Company has a unit selling price of $720, variable costs per unit...
Brief Exercise 18-08
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Brief Exercise 18-08
Wildhorse Company has a unit selling price of $720, variable
costs per unit of $380, and fixed costs of $196,520.
Compute the break-even point in units using (a) the mathematical
equation and (b) unit contribution margin.
(a) Mathematical Equation
(b) Unit contribution margin
Break-even point
units
units
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$170 per unit. The company incurs variable manufacturing costs of $83 per unit. Variable selling expenses are $19 per unit, annual fixed manufacturing costs are $498.000, and fixed selling and administrative costs are $236.400 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Prepare a contribution margin income statement for the break-even sales volume. Complete this question by...
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