Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable cost is $28...
Break-Even Point
Hilton Enterprises sells a product for $61 per unit. The variable cost is $28 per unit, while fixed costs are $228,690.
Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $70 per unit.
| a. Break-even point in sales units | units | ||||
| b. Break-even point if the selling price were increased to $70 per unit | units
Break-Even Point Hilton Enterprises sells a product for $61 per unit. The variable cost is $28 per unit, while fixed costs are $228,690. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $70 per unit.
|
Homework Answers
a. Break-even point in sales units = Fixed costs / Contribution margin per unit
Break-even point in sales units = $228,690 / ($61 - $28)
Break-even point in sales units = 6,930 units
b. Break-even point in sales units = Fixed costs / Contribution margin per unit
Break-even point in sales units = $228,690 / ($70 - $28)
Break-even point in sales units = 5,445 units
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