Homework Answers
| Break-even sales represents number of units sold in which case there would be no profit nor loss for company. | ||||||||
| Formula to calculate break-even sales (units) | ||||||||
| Break-even sales (Units) | Fixed costs/Contribution margin per unit | |||||||
| Formula to calculate contribution margin per unit | ||||||||
| Contribution margin per unit | Selling price per unit - Variable cost per unit | |||||||
| Calculation of break-even sales (units) | ||||||||
| Break-even sales | (1356000+45200)/$116 | |||||||
| Break-even sales | 12,079 | units | ||||||
| Thus, break-even sales (units) is 12,079 units | ||||||||
| Contribution margin per unit | 219-103 | |||||||
| Contribution margin per unit | $116 | |||||||
Add Answer to:
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