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Cost Accounting Breakeven for Clovis Supply's

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Clovis Supply sells two models of saddles to retail outfittersâ?"basic and custom. Basic saddles sell for $930 each and custom saddles sell for $1,620. The variable cost of a basic saddle is $510 and that of a custom saddle is $810. Annual fixed costs at Clovis are $293,850. The break-even point at the current sales mix is 500 total units.

Required:

How many basic saddles and how many custom saddles are sold at the break-even level?

Break-even point

Basic saddles

Custom saddles

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Solution Summary

This solution analyzes the cost accounting breakeven for Clovis Supply's two models of saddle, it includes step-by-step calculations.

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Let us assume quantity sold for Basic saddles be x and custom saddles by y

At Break even level, Fixed Costs= ...

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