Question

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 |
units |

Target Profit

Trailblazer Company sells a product for $245 per unit. The variable cost is $105 per unit, and fixed costs are $952,000.

Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $352,240.

a. Break-even point in sales units |
units | |

b. Break-even point in sales units if the
company desires a target profit of $352,240 |
units |

Answer #1

**Solution 1a:**

Contribution margin per unit = Selling price - Variable cost = $115 - $76 = $39 per unit

Break even point in sales units = Fixed costs / Contribution margin per unit = $357,435 / $39 = 9165 units

**Solution 1b:**

Contribution margin per unit = Selling price - Variable cost = $123 - $76 = $47 per unit

Break even point in sales units = Fixed costs / Contribution margin per unit = $357,435 / $47 = 7605 units

**Solution 2a:**

Contribution margin per unit = Selling price - Variable cost = $245 - $105 = $140 per unit

Break even point in sales units = Fixed costs / Contribution margin per unit = $952,000 / $140 = 6800 units

**solution 2b:**

Break-even point in sales units if the company desires a target profit of $352,240 = (Fixed costs + Target profit) / CM per unit

= ($952,000 + $352,240) / $140 = 9316 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

Hilton Enterprises sells a product for $104 per unit. The
variable cost is $69 per unit, while fixed costs are $257,250.
Determine (a) the break-even point in sales units and (b) the
break-even point if the selling price were increased to $111 per
unit.
a. Break-even point in sales units
units
b. Break-even point if the selling price were
increased to $111 per unit
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
units

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

Scrushy Company sells a product for $150 per unit. The variable
cost is $110 per unit, and fixed costs are $200,000.
Determine (a) the break-even point in sales units and (b) the
break-even point in sales units if the company desires a target
profit of $50,000.
a. Break-even point in sales units
b. Break-even point in sales units if the
company desires a target profit of $50,000

Target Profit
Forest Company sells a product for $250 per unit. The variable
cost is $100 per unit, and fixed costs are $615,000.
Determine (a) the break-even point in sales units and (b) the
break-even point in sales units if the company desires a target
profit of $239,850.
a. Break-even point in sales units
units
b. Break-even point in sales units if the
company desires a target profit of $239,850
units

Target Profit
Outdoors Company sells a product for $245 per unit. The variable
cost is $85 per unit, and fixed costs are $1,184,000.
Determine (a) the break-even point in sales units and (b) the
sales units required for the company to achieve a target profit of
$355,200.
a. Break-even point in sales units
units
b. Break-even point in sales units required
for the company to achieve a target profit of $355,200
units

1) Bears Company sells a product for $15 per unit. The
variable cost is $10 per unit and fixed costs are $1,750,000.
Determine:
The Break-Even point in sales units
The Break-Even point if selling price were increased to
$655 per unit
2) Bear Company sells a product for $15 per unit. The
Variable cost is $10 per unit and fixed costs are $1,750,000.
Determine:
The Break-Even Point in sales units
The Sales units required for the company to achieve a...

The Atlantic Company sells a product with a break-even point of
6,475 sales units. The variable cost is $94 per unit, and fixed
costs are $375,550.
Determine the unit sales price. Round answer to nearest whole
number.
$
Determine the break-even points in sales units if the company
desires a target profit of $96,454. Round answer to the nearest
whole number.
units

The Waterfall Company sells a product for $150 per unit. The
variable cost is $80 per unit, and fixed costs are $270,000.
Determine the following: Round answers to the nearest whole
number.
a. Break-even point in sales units
units
b. Break-even points in sales units if the
company desires a target profit of $36,000
units

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