Question

Calculate the breakeven point and contribution margin. Breakeven point Fixed cost Contribution margin Selling price per...

Calculate the breakeven point and contribution margin.

Breakeven point Fixed cost Contribution margin Selling price per unit Variable cost per unit
units $88,400 $ $9 $5
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Solution :

The formula for calculating contribution margin is

= Selling price per unit – Variable cost per unit         

As per the information given in the question we have

Selling price per unit = $ 9    ;      Variable cost per unit = $ 5

Thus the contribution margin = $ 9 - $ 5 = $ 4             

The formula for calculating Breakeven Point is

= Fixed cost / Contribution margin

As per the information given in the question we have

Fixed Cost = $ 88,400   ; Contribution margin = $ 4

Therefore the Breakeven point = $ 88,400 / $ 4 = 22100

The Contribution margin = $ 4

The Breakeven point in units = 22,100 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
A product has a contribution margin of $9 per unit and a selling price of $55...
A product has a contribution margin of $9 per unit and a selling price of $55 per unit. Fixed costs are $27,000. Assuming new technology increases the unit contribution margin by 50 percent but increases total fixed costs by $16,200, what is the new breakeven point in units?
Calculate the Contribution Margin using the data below: Selling Price per unit $40 Variable Cost per...
Calculate the Contribution Margin using the data below: Selling Price per unit $40 Variable Cost per unit $18 Fixed Cost per unit $5 Selling/Admin Cost    $4 Selling Commission of 15% of the selling price per sale
If the variable cost % is .60 , find the contribution margin % Fixed costs= 400...
If the variable cost % is .60 , find the contribution margin % Fixed costs= 400 , contribution margin %   is .40. Find sales dollars needed to break even. Fixed costs= 500 , contribution margin per unit =10. Find sales in units to earn a net income of 100. Selling price per unit= 80 ; variable costs per unit= 60; fixed costs= 200.    Find the contrib. margin %.
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $289,518. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $848 $318 $530 Y 645 345 300 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $186,032. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $186,032. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,344 $504 $840 Y 538 288 250 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $430,652. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $430,652. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,280 $480 $800 Y 667 357 310 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Steven Company has fixed costs of $195,168. The unit selling price, variable cost per unit, and...
Steven Company has fixed costs of $195,168. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products are provided below. Product Selling Price per Unit Variable Cost per Unit Contribution Margin per Unit X $1,408 $528 $880 Y 430 230 200 The sales mix for Products X and Y is 60% and 40%, respectively. Determine the break-even point in units of X and Y. Round answers to the nearest whole number. units...
Risk assessment calculations Baseline information: 40,000 units sold at a unit selling price of $100, variable...
Risk assessment calculations Baseline information: 40,000 units sold at a unit selling price of $100, variable costs of $80 per unit, fixed costs of $750,000 1. Calculate the contribution margin per unit in dollars and as a percentage 2. Prepare a financial report in the contribution margin format Calculate the breakeven point in dollars and unit sales 4. Prove the validity of the breakeven calculation by preparing a financial report using the contribution margin format 5. Calculate the performance level...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and...
Heyden Company has fixed costs of $705,600. The unit selling price, variable cost per unit, and contribution margin per unit for the company's two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $700 $460 $240 ZZ 380 260 120 The sales mix for Products QQ and ZZ is 20% and 80%, respectively. Determine the break-even point in units of QQ and ZZ. If required, round your answers to the nearest whole number. a. Product...
eyden Company has fixed costs of $350,900. The unit selling price, variable cost per unit, and...
eyden Company has fixed costs of $350,900. The unit selling price, variable cost per unit, and contribution margin per unit for the company’s two products follow: Product Model Selling Price Variable Cost per Unit Contribution Margin per Unit Yankee $100 $60 $40 Zoro 140 80 60 The sales mix for products Yankee and Zoro is 10% and 90%, respectively. Determine the break-even point in units of Yankee and Zoro. a. Product Model Yankee fill in the blank 1 units b....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT