Variable Cost, how to calculate break even sales?
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3) xyc Manufactures biotech sunglasses. The variable material cost is $4.68
Per unit and variable cost is $2.27 per unit.
a. What is the variable cost per unit?
b. If fixed cost are $650,000during a year in which total production is $320,000 units, what are the total costs for the year?
c. If the selling price is $11.99 per unit, what is the break-even number of units at fixed costs of $300,000
4) Calculate break-even sales and units.
Unit Price Unit Var Cost Fixed Costs
27.50 13.79 24,000.00
139 127 55,000.00
11 3 1500.00
5) Tires Sell for $130. Per tire ,Unit variable costs = 76 per tire, Per month Rent = 3000 Commission per unit=10 Fixed salaries per month= $30,000.
a. How many tires be sold to break even?
b. How many tires need be sold in order to make $15000?
6) If the variable cost ratio is 60% and fixed costs are $20,000 what are break even sales.
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Solution Summary
This solution is comprised of a detailed explanation to calculate the variable cost per unit, break-even sales and units, and how many units required to be sold in order to achieve target profit.
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3) xyc Manufactures biotech sunglasses. The variable material cost is $4.68
Per unit and variable cost is $2.27 per unit.
a. What is the variable cost per unit?
$4.68 + $2.27 = $6.95 per unit
b. If fixed costs are $650,000during a year in which total production is 320,000 units, what are the total costs for the year?
Total costs = Total fixed costs + Total variable costs
Total costs = $650,000 + $6.96(320,000) = $2,874,000
c. If the selling price is $11.99 per unit, what is the break-even number of units at fixed costs of $300,000
First, we need to find the contribution margin per unit.
Contribution margin per unit = Unit selling price - Variable cost ...
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