Explore BrainMass

Explore BrainMass

    Break Even Point - C-V-P

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The C-V-P Equation
    The company sells lawnmowers for $895 each. The variable cost per lawnmower is $520. The company's monthly fixed costs are $84,500. Using the C-V-P equation, compute the amount of profit the company will have for a month in which the company sells 375 lawnmowers.

    Break-Even Units
    The company sells shovels for $27.75 each. The variable cost per shovel is $14.25. The company's monthly fixed costs are $2,538. Compute the number of shovels the company must sell to break even.

    Break-Even Sales Revenue
    The company has a variable cost ratio of 65% and monthly fixed costs of $91,000. What is the company's break-even point in terms of sales dollars?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:23 pm ad1c9bdddf
    https://brainmass.com/business/accounting/break-even-point-c-v-p-135394

    Solution Summary

    This solution answers 3 break even questions, addressing C-V-P equation and fixed cost revenues.

    $2.19

    ADVERTISEMENT