Question

Break-Even Point Nicolas Inc. sells a product for $62 per unit. The variable cost is $38...

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
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

a. Break-even point in sales units

  Contribution per unit = Selling price – Variable cost per unit

= $62 - $38

= $24 per unit

Break-even point in unit sales = Fixed costs / Contribution per unit

= $69,120 / $24 per unit

= $2,880 units

b. Break-even point if the selling price were increased to $68 per unit

    Contribution per unit = Selling price – Variable cost per unit

= $68 - $38

= $30 per unit

Break-even point in unit sales = Fixed costs / Contribution per unit

= $69,120 / $30 per unit

= $2,304 units

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Break-Even Point Nicolas Enterprises sells a product for $95 per unit. The variable cost is $43...
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 Hilton Enterprises sells a product for $104 per unit. The variable cost is $51...
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...
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...
Hilton Enterprises sells a product for $104 per unit. The variable cost is $69 per unit,...
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
1) Bears Company sells a product for $15 per unit. The variable cost is $10 per...
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...
Break-Even Sales Currently, the unit selling price of a product is $320, the unit variable cost...
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
Break-Even Sales Currently, the unit selling price of a product is $320, the unit variable cost...
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 $200, the unit variable cost...
Break-Even Sales Currently, the unit selling price of a product is $200, the unit variable cost is $160, and the total fixed costs are $360,000. A proposal is being evaluated to increase the unit selling price to $220. a. Compute the current break-even sales (units). b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant.
Break-Even Sales Currently, the unit selling price of a product is $230, the unit variable cost...
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...
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
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT