1: BREAK-EVEN POINT IN UNITS AND IN REVENUE Unit selling price $8.00 Unit variable costs Unit contribution margin Fixed Costs: $100,000 (6.00) ($300,000 = 50,000) $2.00 Calculate the following: 1. Break-even point in units 2. Break-even point in revenue EXERCISE 2: BREAK-EVEN POINT IN UNITS AND IN REVENUE Using the information in Exercise 1, if rent were increased by $25,000 and variable costs and unit selling price remained unchanged, what would be the new PV ratio and break- even point in units and in revenue?

1: BREAK-EVEN POINT IN UNITS AND IN REVENUE Unit selling price $8.00 Unit variable costs Unit contribution margin Fixed Costs: $100,000 (6.00) ($300,000 = 50,000) $2.00 Calculate the following: 1. Break-even point in units 2. Break-even point in revenue EXERCISE 2: BREAK-EVEN POINT IN UNITS AND IN REVENUE Using the information in Exercise 1, if rent were increased by $25,000 and variable costs and unit selling price remained unchanged, what would be the new PV ratio and break- even point in units and in revenue?

Name: EXERCISE l: BREAK EVEN POINT IN UNITS AND IN REVENUEUnit selling pric
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Description: EXERCISE l: BREAK EVEN POINT IN UNITS AND IN REVENUEUnit selling price248.00Unit variable costs(6.00) ($300,000-50,000)$2.00Unit contribution marginFixed Costs: $100,000Calculate the following:1. Break-even point in units2. Break-even point in reven

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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