Breakeven Analysis from Contribution Margin
Not what you're looking for?
What is the breakeven point from the given below information?
fixed costs $20,000
variable costs 33% of sales
avg selling price is $10,000
a) As % of sales, what is its variable or contribution margin?
b) If the average sale is $10,000 what is the contribution margin/vehicle?
c)1. what is the breakeven volume in $ of revenue?
2. what is breakeven in units (knowking no one wishes to buy 2/3 or 1/5 of a car)
d) If fixed costs increased to $30,000, what would breakeven be?
e) Why do we care about breakeven, and cost-volume-profit?
Purchase this Solution
Solution Summary
Calculates breakeven point and carries out the break even analysis.
Solution Preview
What is the breakeven point from the given below information?
fixed costs $20,000
variable costs 33% of sales
avg selling price is $10,000
a) As % of sales, what is its variable or contribution margin?
Selling price= 100%
Variable cost= 33%
Therefore Contribution margin (%)= 67% =100%-33%
b) If the average sale is $10,000 what is the contribution margin/vehicle?
Average selling price= $10,000
Contribution margin / vehicle= $6,700 =67%*$10,000
c)1. what is the ...
Purchase this Solution
Free BrainMass Quizzes
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.