Homework Answers
Revenue per unit = $39.95
Variable cost per unit = $24.75
Fixed cost = $4,000,000 per year
A) Break even quantity per month
Formula = Fixed cost / Contribution per unit
Contribution per unit = Revenue per unit - Variable cost per unit
Break even quantity = $4,000,000 / ($39.95 - $24.75 )
= 263158 units
Break even quantity per month = $263158 / 12
=21930 units.
B) Quantity 10% above from break even point = ( $21930 * 1.1) = 24123 units
Quantity 10% below from break even point = ( $21930 * .90 ) = 19737 units
Quantity above the break even pointy has profit and quantity below the break even point has loss. since on break even point there is no loss and no profit.
| Particular | 10% Above | 10% Below |
| Quantity | 24123 | 19737 |
| Contribution per unit | $15.20 | $15.20 |
| Profit before fixed cost | $366,669.60 | $300,002.40 |
| Fixed cost ( per month ) | $333,333.33 | $333,333.33 |
| Profit / Loss | $33,336.27 | ($33,330.93) |
Add Answer to:
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please explain how to get the sales revenue at breakeven and the
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2.) calculate breakeven
3.) what is the profit impact for model peb9159sfss
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please explain how to get the sales revenue at breakeven and the
sales revenue at target profit (the gray boxes)! :)
131 Center $ . % Xv fx ) Conditional Format Forming as a St Launch Shipping and handling ---- 40.3951 94 11 1 523.4117647 se Wet Business & Directions Original Assumptions Advising client - on Ready Multiproduct Breakeven point: -in units Sales revenue at breakeven Product #1 53.78151261 Product #2 40.33613445 Total 94.11764706 + Product #1 Product #2 Multiproduct...
Problem 2 Answer the following questions based on the table below. PriceQuantity Quantity Supplied Per Month S5 $4 $3 $2 Demanded Per Month 6,000 8,000 10,000 12,000 10,000 8,000 6,000 4,000 $1 14,0002,000 Given the table above, graph the demand and supply curves for flashlights. Make certain to label the equilibrium price and equilibrium quantity. What is the equilibrium price and the equilibrium quantity? Suppose the price is currently S5. What problem would exist in the market? What would you...
76. A firm selling three products has the following data: Unit Unit Variable Product Sales Mix Price Cost 60,000 units $40 S20 40,000 units 60 30 20,000 units 30 5 If the firm can change the sales mix from 60,000 P, 40,000 Q, and 20,000 R to 60,000 P, 20,000 Q, and 40,000 R, pre-tax income will be a) Lower b) Higher c) Unchanged d) Cannot be determined Answer: a Difficulty: Medium Learning Objective: Apply CVP calculations for multiple products....
[2] Studies conducted by a firm confirmed that the sales volume (V) of its product is relative to its unit selling price (P) and derived an equation to estimate the sales volume, V $100- P If the cost of production is composed of $1000 fixed cost and $10 variable cost per part (a) Draw a graph with the sales volume (V) from 0 to 100 on the x axis, and total cost and total income from $0 to $2500 on...
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