1. Given the following, depict fully and explain break-even in units, break-even in dollars, total revenue...

1. Given the following, depict fully and explain break-even in units, break-even in dollars, total revenue line, total cost line, fixed cost line, break-even point, etc.

Fixed Cost: $120,000

Sales per Unit: $15.00

Variable cost per Unit: $3.00

Include a discussion regarding sensitivity analysis for an inelastic product.

Expert Solution

Breakeven point is the point where the total revenue is equal to the total cost.

Total cost is equal to fixed plus variable cost.

Rahul Sunny answered 6 months ago

17. Using the following information, calculate the Break-Even in terms of dollars and number of units....

17. Using the following information, calculate the Break-Even in terms of dollars and number of units. (15 points) BELT MANUFACTURER Cost of leather per belt- $20 Cost of one belt buckle - $25 Cost to drill holes and attach buckle per belt - $5 Management payroll per month - $10,000 Operating expense per month - $20,000 Factory rent per month - $20,000 Price charged to retail store for 5 belts - $500 Cost per belt= $20, buckle /belt=$25, drill holes&buckle/belt=$5...

The break-even point tells a company the number of units or the amount of revenue that...

The break-even point tells a company the number of units or the amount of revenue that it must sell or earn in order to pay for all of its costs. At this point, the company has neither profit nor loss. Companies have two main types of costs: variable costs and fixed costs. Variable costs are those costs that vary with the number of units produced. Examples of variable costs are direct labor, direct materials and overhead. Fixed costs are those...

Please explain how to calculate Break-Even in units and Sales dollars using the Contribution Margin Approach....

Please explain how to calculate Break-Even in units and Sales dollars using the Contribution Margin Approach. Please explain the impact to Break-Even (increase,decrease,remain the same) under the following three different scenarios: 1. increase in fixed costs 2.increase in variable costs 3. increase in sales per unit

Calculate the break-even sales revenue and units for the 500 mL bottle and the proposed 2L...

Calculate the break-even sales revenue and units for the 500 mL bottle and the proposed 2L bottle. Calculate the net profit for the sales target of 10,000, 12,500 and 15,000 units of each product size. What do you recommend that Kai should do with his product line? Stick to 500 mL only? Add 2L as new size? Other suggestions? Do you agree with the online promotional and distribution strategy Kai is considering? What recommendations for improvement would you suggest? Selling...

Using the 2009 Budget (Money is given in Canadian dollars), prepare a break even analysis to...

Using the 2009 Budget (Money is given in Canadian dollars), prepare a break even analysis to find: 1. At what trip fee does JUDES break even on the trips? 2. At what participant level does JUDES break even on the trips? Please show all formulas and calculations so I can follow along and learn how to apply the concepts for the future. EXHIBIT 1 JUDES BUDGET 2009 - PER TRIP Chayotepec Trip 2009 COST OF GOODS Grand Total (C$) Ground...

Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity...

Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity = 16,000 units; life = three years; fixed costs = $160,000; variable costs = $60 per unit; required return = 15 percent. Ignoring the effect of taxes, find the financial break-even quantity.

Consider a project with the following data: accounting break-even quantity = 11,175 units; cash break-even quantity...

Consider a project with the following data: accounting break-even quantity = 11,175 units; cash break-even quantity = 10,000 units; life = four years; fixed costs = $160,000; variable costs = $24 per unit; required return = 8 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Break-even quantity * Please post formula used*

Question 1 Calculate the break-even point in dollars from the following information. Selling price per unit...

Question 1 Calculate the break-even point in dollars from the following information. Selling price per unit is $50, variable costs per unit are $30 and fixed costs for the year are $25 000 a. $1 250 b. Unable to be determined from the information given c. $83 333 d. $41 667 e. $62 500 1 points Question 2 If McLeod Ltd’s selling price is $50 per unit, fixed costs are $499 800, and the contribution margin ratio is 0.34. The...

Considering that the company has a unit break-even point of 600 units, what is the margin of safety in terms of both units and sales revenue?

APPLY THE CONCEPTS: Margin of SafetyMargin of safety can allow you to see how much padding there is for your company between profit and loss. If this number is great, it may indicate that your company is performing very well. If this number is small, it may be worth looking into possible remediation. Consider the following pricing and cost information:Price and Cost InformationAmountSelling Price per Unit$400Variable Cost per Unit$325Total Fixed Cost$45,000For the upcoming period, the company projects that it will...

Exercise 20-6 Compute break-even point in sales dollars and units under varying assumptions; comment on results...

Exercise 20-6 Compute break-even point in sales dollars and units under varying assumptions; comment on results (L.O. 3, 4) Never Late Delivery currently delivers packages for $9 each. The variable cost is $3 per package, and fixed costs are $60,000 per month. Compute the break-even point in both sales dollars and units under each of the following independent assumptions. Comment on why the break-even points are different. a. The costs and selling price are as just given. b. Fixed costs...

Question