Calculate break even when a given profit is required


Assignment

1) Contribution Margin

a. DATA

i. Fixed Costs = $50,000
ii. Variable Costs = $15
iii. Cost Per Unit = $20

b. Calculate the CM

c. Calculate the CM %

2) Contribution Margin

a. DATA

i. Fixed Costs

1. Fixed Factory Overhead = $50,000
2. Fixed Selling overhead = $10,000

ii. Variable Costs

1. Variable Manufacturing costs = $10
2. Variable selling cost per unit = $4

iii. Cost Per Unit = $35

b. Calculate the CM

c. Calculate the CM %

3) Break Even Point

a. DATA

i. Fixed Costs = $25,000
ii. Variable Costs = $20
iii. Cost Per Unit = $30

b. Calculate the CM

c. Calculate the CM %

d. Calculate Break Even Point

4) Break Even Point

a. DATA

i. Fixed Costs

1. Fixed Factory Overhead = $100,000
2. Fixed Selling overhead = $20,000

ii. Variable Costs

1. Variable Manufacturing costs = $30
2. Variable selling cost per unit = $5

iii. Cost Per Unit = $100

b. Calculate the CM

c. Calculate the CM %

d. Calculate Break Even Point

5) Calculate Break Even when a given profit is required

a. DATA

i.

1. Fixed Costs

a. Fixed Factory Overhead = $63,000
b. Fixed Selling overhead = $10,000

2. Variable Costs

a. Variable Manufacturing costs = $30
b. Variable selling cost per unit = $5

3. Cost Per Unit = $100

4. Profit of $12,000 is required

ii. Calculate the CM

iii. Calculate the CM %

iv. Calculate Break Even Point

b. DATA

i.

1. Fixed Costs

a. Fixed Factory Overhead = $1,000,000
b. Fixed Selling overhead = $500,000

2. Variable Costs

a. Variable Manufacturing costs = $1000
b. Variable selling cost per unit = $500

3. Cost Per Unit = $10,000

4. Profit of $250,000 is required

ii. Calculate the CM

iii. Calculate the CM %

iv. Calculate Break Even Point

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Accounting Basics: Calculate break even when a given profit is required
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