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C-V-P, Break-Even, Break-Even Sales Revenue

See attached file for full problem description.

The C-V-P Equation

The company sells lawnmowers for $895 each. The variable cost per lawnmower is $20. 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.

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Solution Summary

A break-even analysis on two questions as well as a profit calculation using the C-V-P equation.

$2.19