A company is considering a project with a cash break-even point of 16,400 units. The selling price is $37 a unit, the variable cost per unit is $22, and depreciation is $18,000. What is the projected amount of fixed costs? Show your work.
Cash breakeven=Fixed costs/(Unit price-Variable cost)
16400=Fixed costs/(37-22)
Fixed costs=16400*15
=$246,000
A company is considering a project with a cash break-even point of 16,400 units. The selling...
Break even point in units = Fixed cost / Contribution Margin per unit Target Profit = (Fixed Cost + Target Profit) / Contribution Margin Per Unit Break even point in dollars = Fixed cost / Contribution Margin % After tax target profit = (Fixed Cost) + (Target Profit) / (1 - Tax Rate) / Contribution Margin Per Unit Break even on a cash basis = (Fixed cost - Non cash items) / Contribution margin per unit Variable cost per unit...
Sales Mix and Break-Even
Analysis
Conley Company has fixed costs of $17,802,000.
The unit selling price, variable cost per unit, and
contribution margin per unit
for the company’s two products follow:
Product Model
Selling Price
Variable Cost per Unit
Contribution Margin per Unit
Yankee
$180
$99
$81
Zoro
225
135
90
The sales mix for products Yankee and Zoro is 80% and 20%,
respectively. Determine the break-even point in
units of Yankee and Zoro.
1 eBook Show Me How Sales...
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break even point and balance sheet
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