Question

Break-Even Sales Currently, the unit selling price of a product is $320, the unit variable cost is $260, and the total fixed costs are $918,000. A proposal is being evaluated to increase the unit selling price to $350.

a. Compute the current break-even sales (units). units

b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. units

Answer #1

**Answer :**

**Contribution per unit = selling price per unit -
variable cost per unit**

**Break-even sales ( units ) = Fixed cost / contribution
per unit**

**a.** Calculation of current break-even sales (
units )

Contribution per unit = selling price per unit - variable cost = $320 - $260 = $60

Current Break-even sales ( units ) = fixed cost / contribution
per unit = $918,000 / $60 = **15,300 units.**

**b.** Calculation of anticipated break-even sales
( units ), when selling price is increased to $350.

Contribution per unit = selling price - variable cost = $350 - $260 = $90

Anticiapted Break-even sales ( units ) = fixed cost /
contribution per unit = $918,000 / $90 = **10,200
units.**

Break-Even Sales
Currently, the unit selling price of a product is $320, the unit
variable cost is $260, and the total fixed costs are $810,000. A
proposal is being evaluated to increase the unit selling price to
$350.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased and all
costs remain constant.
units

Break-Even Sales
Currently, the unit selling price of a product is $230, the unit
variable cost is $190, and the total fixed costs are $448,000. A
proposal is being evaluated to increase the unit selling price to
$260.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased to the
proposed $260, and all costs remain constant.
units

Break-Even Sales
Currently, the unit selling price of a product is $230, the unit
variable cost is $190, and the total fixed costs are $420,000. A
proposal is being evaluated to increase the unit selling price to
$260.
a. Compute the current break-even sales
(units).
units
b. Compute the anticipated break-even sales
(units), assuming that the unit selling price is increased to the
proposed $260, and all costs remain constant.
units

Break-Even Point
Nicolas Enterprises sells a product for $95 per unit. The
variable cost is $43 per unit, while fixed costs are
$1,116,752.
Determine (a) the break-even point in sales units and (b) the
break-even point if the selling price were increased to $102 per
unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were
increased to $102 per unit
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Break-Even Point
Nicolas Inc. sells a
product for $62 per unit. The variable cost is $38 per unit, while
fixed costs are $69,120.
Determine (a) the
break-even point in sales units and (b) the break-even point if the
selling price were increased to $68 per unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were
increased to $68 per unit
units

Break-Even Point
Hilton Enterprises sells a product for $104 per unit. The
variable cost is $51 per unit, while fixed costs are
$1,160,117.
Determine (a) the break-even point in sales units and (b) the
break-even point if the selling price were increased to $110 per
unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were
increased to $110 per unit
units

Break-Even Point
Hilton Enterprises sells a product for $115 per unit. The
variable cost is $76 per unit, while fixed costs are $357,435.
Determine (a) the break-even point in sales units and (b) the
break-even point if the selling price were increased to $123 per
unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were
increased to $123 per unit
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Target Profit
Trailblazer Company sells a product for $245 per unit. The
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Heyden Company has fixed costs of $1,263,850. The unit selling
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Product
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Model 94
$440
$180
$260
Model 81
320
280
40
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335 units
329...

RUSH
The unit selling price of a product is $150, the unit variable
cost is $90, and the total fixed costs are $50,000. Break-even
sales (in units) are
334
556
834
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