In Keegan Corporation's most recent fiscal year, the company reported pretax earnings of $229,000. Fixed costs...

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In Keegan Corporations most recent fiscal year, the company reported pretax earnings of $229,000. Fixed costs totaled $436,8

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Answer 1

Answer #1

Selling Price per unit = $ 70

Variable Cost per unit = 40% of Selling Price

= 70 x 40% = $ 28

Variable Cost per unit = $ 70 - $ 28 = $ 42

Contribution Margin per unit = Selling Price per unit - Variable Cost per unit

= $70 - $28 = $42 per unit

Break Even Points in units = Fixed Cost / Contribution Margin per unit

= 436,800 / 42

= 10,400 units

Ans : Break Even Point in units = 10,400 units

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Answer 2

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