Question

In: Accounting

Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $19.00...

Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $19.00 per unit, and the sales price is $25.00 per unit.

Solutions

Expert Solution

CALCULATION OF CONTRIBUTION MARGIN
PARTICULARS AMOUNT
Selling Price Per Unit= $                           25
Less: Variable Cost Per Unit $                           19
Contribution Margin Per Unit $                             6
Answer = 1
CALCULATION OF THE BREAK EVEN POINT IN UNITS
Break Even point =      Fixed Cost / Contribution Margin Per Unit
Break Even point =      
Fixed Cost = $                   30,000
Divide By "/" By
Contribution Margin Per Unit = $                             6
Break Even point =       5000 Units
Answer = Unit Break even point = 5000 Units

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