What happens at a company's break-even point? How can you compute the break-even point for a company? How can a change in costs for a product or service be incorporated into the break-even calculation?

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What happens at a company's break-even point?
Break even point is the point at which gains equal losses.
Break-even analysis is basically an analytical technique for studying the relations between:

* fixed costs;
* variable costs; and
* profits.
Break-even analysis is a device for determining the point at which sales will just cover ...

Solution Summary

This explains the concept of Company's break-even point

Maxson Products distributes a single product, a woven basket whose selling price is $8 and whose variable cost is $6 per unit. The company's monthly fixed expense is $5,500.
Required:
Solve for the company'sbreak-evenpoint in unit sales using the equation method.
Solve for the company'sbreak-evenpoint in sales dollars

What is a break-evenpoint? If an organization's fixed costs increase, what happens to the break-evenpoint? How can the break-evenpoint be lowered? Why is the break-even analysis an important tool for management? When evaluating a company, how might this information be used?

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 lawnmo

Lindon Company is the exclusive distributor for an automotive product that sells for $40 per unit and has a CM ratio of 30%. The company's fixed expenses are $180,000 per year. The company plans to sell 16,000 units this year.
Required:
1. What are the variable expenses per unit?
2. Using the equation method:
a. What is th

Please help answer the following question.
A finance manager considers the accounting break-evenpoint more important than the financial break-evenpoint. Do you agree with the manager? Give reasons.

Winny's Office Furniture has a contribution margin ratio of 16%. If fixed costs are $187,800, how many dollars of revenue must the company generate in order to reach the break-evenpoint?

Assume that a commercial airplane manufacturing company's annual fixed costs for the widebody passenger jet are $1,425 million, and its variable cost per airplane is $90 million. The price for a 240-passenger plane with a range up to 4,010 miles is about $105 million per plane.
Compute the company'sbreak-evenpoint in numb

Street Company's fixed expenses total $150,000, its unit sales price is $10 and its variable cost per unit is $5. What is the break-evenpoint in units...choices are? (Points: 15)
a. 30,000
b. 38,000
c. 27,500
d. 10,500

A revenue function is R(x) = 22x and a cost function is C(x) = -9x + 341. The break even point is:
A. (17, 374)
B. (242, 9)
C. (11, 242)
D. (31.5, 661.5)