| Sales Price | $ 25.00 | $ 30.00 | $ 35.00 | |||
| Fixed Costs | $ 858 | $ 1,379 | $ 2,368 | |||
| Contribution Margin | $ 20.35 | $ 22.65 | $ 25.03 | |||
| Break-even Units (round up) | 42.16 | 60.88 | 94.61 | |||
| Target Profit | $ 417.00 | $ 583.00 | $ 1,000.00 | |||
| Break-even Units (round up) | ||||||
| Target Profit | $ 667.00 | $ 909.00 | $ 1,500.00 | |||
| Break-even Units (round up) | - | - | - |
Answer:
|
Sales Price |
25 |
30 |
35 |
|
Fixed Costs |
858 |
1379 |
2368 |
|
Contribution Margin |
20.35 |
22.65 |
25.03 |
|
Break-even Units (round up) |
42.16 |
60.88 |
94.61 |
|
Target Profit |
417 |
583 |
1000 |
|
Break-even Units (round up) |
62.65 |
86.62 |
134.56 |
|
Target Profit |
667 |
909 |
1500 |
|
Break-even Units (round up) |
74.94 |
101.02 |
154.53 |
Working notes for the above answer is as under
INSTRUCTIONS: Show all steps and calculations to determine the break-even. Determine the break-even for the target profit levels as outlined in the instructions. Break-even = Fixed Costs / Contribution Margin DAY CARE BOARDING GROOMING Sales Price $ - $ - $ - Fixed Costs $ - $ - $ - Contribution Margin $ - $ - $ - Break-even Units (round up) ...
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