Break-even sales and units
Not what you're looking for?
McConnell & Brue text
Identify, analyze, and solve real-world problems that involve quantitative information
Reason quantitatively and make numerical arguments
Interpret and communicate the results of quantitative analyses
Use technology and Internet resources effectively and build skills in working
with data
Develop and improve "numerical intuition" and confidence in the ability to
engage in quantitative thinking
Complete the following dependent and independent variables question
Horngren text
Ch. 2, question 2B2
2-B2 Basic CVP Exercises
Each problem is unrelated to the others.
1. Given: Selling price per unit, $20; total fixed expenses, $5,000; variable expenses per unit, $15.
Find break-even sales in units.
2. Given: Sales, $40,000; variable expenses, $30,000; fixed expenses, $7,500; net income, $2,500.
Find break-even sales in dollars.
3. Given: Selling price per unit, $30; total fixed expenses, $33,000; variable expenses per unit, $14.
Find total sales in units to achieve a profit of $7,000, assuming no change in selling price.
4. Given: Sales, $50,000; variable expenses, $20,000; fixed expenses, $20,000; net income,
$10,000. Assume no change in selling price; find net income if activity volume increases 10%.
5. Given: Selling price per unit, $40; total fixed expenses, $80,000; variable expenses per unit, $30.
Assume that variable expenses are reduced by 20% per unit, and the total fixed expenses are increased by 10%. Find the sales in units to achieve a profit of $20,000, assuming no change in selling price.
Purchase this Solution
Solution Summary
Response provides steps to compute the break-even sales and units
Solution Preview
Please see the attached file.
1. Given: Selling price per unit, $20; total fixed expenses, $5,000; variable expenses per unit, $15.
Find break-even sales in units.
Break even Sales in Units = Fixed costs/Contribution margin per unit
=5000/(20-15)
1,000 planes
Note: Contribution margin per unit= Sales price per unit-Variable cost per unit
2. Given: Sales, $40,000; variable expenses, $30,000; fixed expenses, $7,500; net ...
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.