Homework Answers
Ans 8000 units
| VARIABLE COST = | BREAK EVEN SALES - FIXED COST |
| VARIABLE COST = | (6000*20) - 42000 |
| VARIABLE COST = | 78000 |
| VARIABLE COST PER UNIT = | VARIABLE COST / NO OF UNITS |
| 78000 / 6000 | |
| 13.00 | |
| BREAK EVEN FOR TARGET PROFIT = | (FIXED COST + TARGET PROFIT) / CONTRIBUTION PER UNIT |
| (FIXED COST + TARGET PROFIT) / (SALES PRICE - VARIABLE COST) | |
| (42000 + 14000) / (20 - 13) | |
| 8000 UNITS | |
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13 Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit....
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