Richard's Breakeven Point Calculations
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Rewrite the formula above, to make it appropriate for breakeven calculations
All these ques. refer to data listed:
Where is Richard's breakeven point"
Fixed costs $20,000
Variable costs 33% of sales avg sellings price is $10,000
a. as a % of sales, what is its variable or contribution margin?
b. If the avg. sale is $10,000 what is the c. margin/vehicle?
c. what is the breakeven volume in $ or revenue
d. what is the breakeven in units keeping in mind that no one wishes to buy 2/3 or 1/5 of a car.
e. if fixed cost increased to $30,000 then what would breakeven be?
f. Why do we care about all this breakeven, and cost-volume-profit things.
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Where is Richard's breakeven point"
Fixed costs $20,000
Variable costs 33% of sales
Avg. Selling price is $10,000
a. As a % of sales, what is its variable or contribution margin?
Variable margin = 0.33SP, where SP is the selling price
b. If the avg. sale is $10,000 what is the c. margin/vehicle?
Cost margin per vehicle = 0.33*10,000 = 3,300
c. what is the ...
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