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    Accounting Calculations: Breakeven Points

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    Calculate the unknown for the following situations based on the data below. All situations are independent of each other.

    Total fixed costs $100,000
    Unit selling price $50
    Unit variable cost $30

    a) Calculate the following:
    1) break-even point in units
    2) break-even point in dollar sales

    b) Assume the unit selling price increases by 5%. Other data unchanged.
    Calculate the break-even point in units.

    c) Assume the unit variable costs increase by 10%. Other data is unchanged.
    Calculate the break-even point in units.

    d) Assume total fixed costs increase by $5,000. Other data is unchanged.
    Calculate the break-even points in units.

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    Solution Preview

    Accounting Calculations: Breakeven Points
    Calculate the unknown for the following situations based on the data below. All situations are independent of each other.

    Total fixed costs $100,000
    Unit selling price $50
    Unit variable cost $30
    Contribution margin per unit = Unit ...

    Solution Summary

    This solution is comprised of a detailed explanation to calculate the following:
    1) break-even point in units
    2) break-even point in dollar sales

    $2.19

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