Assignment: Breakeven Analysis
Brandon's home health care agency is considering a new product with a fixed cost of $2,000, a charge per unit of $150, and a variable cost of $100.
1. Calculate the break-even point in quantity.
2. Calculate the contribution margin in dollars.
3. Calculate the contribution margin as a percent.
4. Calculate the breakeven point in dollars.
5. The breakeven point occurs where:
A. total variable costs and total revenue intersect
B. total revenue outpaces total avoidable fixed costs
C. total costs and total revenue intersect
D. total fixed costs and total revenue intersect
E. total profit margin and total costs intersect
6. Define cost behavior. Identify and explain the five general types of cost behavior.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.