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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