Homework Answers
1) Calculate following
| Break even Unit | |||||
| Choose numerator | / | Choose denominator | = | Break even unit | |
| Fixed cost | / | Contribution margin per unit | = | Break even unit | |
| 90860 | / | 118 | 770 | ||
| Number of units of each product at break even | |||||
| Quantity | No of composite unit at break even | Unit sales at break even point | |||
| Tablet computers | 770 | 4/6 | 513 | ||
| Smartphones | 770 | 2/6 | 257 | ||
| Total | 770 | ||||
2) Calculate following
| Contribution margin per unit | |||||
| Selling price | 95 | per unit | |||
| Variable cost | 38 | per unit | |||
| Contribution margin | 57 | per unit | |||
| Break even unit | |||||
| Choose numerator | / | Choose denominator | = | Break even units | |
| Fixed cost | / | Contribution margin per unit | = | Break even units | |
| 210900 | / | 57 | = | 3700 Units | |
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