Finding break even sales


Question 1: xyc Manufactures biotech sunglasses. The variable material cost is $4.68 Per unit and variable cost is $2.27 per unit.

a. What is the variable cost per unit?
b. If fixed cost are $650,000during a year in which total production is $320,000 units, what are the total costs for the year?
c. If the selling price is $11.99 per unit, what is the break-even number of units at fixed costs of $300,000

Question 2: Calculate break-even sales and units.

Unit Price    Unit Var Cost    Fixed Costs
27.50               13.79          24,000.00
139                  127             55,000.00
11                     3                 1500.00

Question 3: Tires Sell for $130. Per tire ,Unit variable costs = 76 per tire, Per month Rent = 3000 Commission per unit=10 Fixed salaries per month= $30,000.

a. How many tires be sold to break even?
b. How many tires need be sold in order to make $15000?

Question 4: If the variable cost ratio is 60% and fixed costs are $20,000 what are break even sales.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Finding break even sales
Reference No:- TGS01913349

Now Priced at $25 (50% Discount)

Recommended (97%)

Rated (4.9/5)