2. On the basis of French's revised information, what does next year look like: a. What is the break-even point? 1,035,688 units Sales at full capacity (units) Sales volume (units) Unit sales price ($) Sales revenue ($) Variable cost per unit ($) Contribution margin per unit ($) Total variable cost ($) Fixed costs ($) Profit ($) Ratios Variable cost to sales Unit Contribution to sales Utilization of capacity (%) Break even point (units) Aggregate 2,000,000 1,750,000 6.948 12,160,000 3.385 3.56 5,925,000 3,690,000 2,545,000 0.49 0.51 87.5 1,035,688.312 A 400,000 $10 4,000,000 7.5 2.5 3,000,000 960,000 40,000 0.75 0.25 20 384,000 Product Lines B 400,000 $9 3,600,000 3.75 5.25 1,500,000 1,560,000 540,000 0.42 0.58 20 297,143 с 950,000 $4.80 4,560,000 1.5 3.3 1,425,000 1,170,000 1965000 0.31 0.69 47.5 354,545
2. On the basis of French's revised information, what does next year look like: a. What is the break-even point? 1,035,688 units Sales at full capacity (units) Sales volume (units) Unit sales price ($) Sales revenue ($) Variable cost per unit ($) Contribution margin per unit ($) Total variable cost ($) Fixed costs ($) Profit ($) Ratios Variable cost to sales Unit Contribution to sales Utilization of capacity (%) Break even point (units) Aggregate 2,000,000 1,750,000 6.948 12,160,000 3.385 3.56 5,925,000 3,690,000 2,545,000 0.49 0.51 87.5 1,035,688.312 A 400,000 $10 4,000,000 7.5 2.5 3,000,000 960,000 40,000 0.75 0.25 20 384,000 Product Lines B 400,000 $9 3,600,000 3.75 5.25 1,500,000 1,560,000 540,000 0.42 0.58 20 297,143 с 950,000 $4.80 4,560,000 1.5 3.3 1,425,000 1,170,000 1965000 0.31 0.69 47.5 354,545
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2. On the basis of French's revised information, what does next year look like:
a. What is the break-even point?
1,035,688 units
Sales at full capacity (units)
Sales volume (units)
Unit sales price ($)
Sales revenue ($)
Variable cost per unit ($)
Contribution margin per unit ($)
Total variable cost ($)
Fixed costs ($)
Profit ($)
Ratios
Variable cost to sales
Unit Contribution to sales
Utilization of capacity (%)
Break even point (units)
Aggregate
2,000,000
1,750,000
6.948
12,160,000
3.385
3.56
5,925,000
3,690,000
2,545,000
0.49
0.51
87.5
1,035,688.312
A
400,000
$10
4,000,000
7.5
2.5
3,000,000
960,000
40,000
0.75
0.25
20
384,000
Product Lines
B
400,000
$9
3,600,000
3.75
5.25
1,500,000
1,560,000
540,000
0.42
0.58
20
297,143
C
950,000
$4.80
4,560,000
1.5
3.3
1,425,000
1,170,000
1965000
0.31
0.69
47.5
354,545
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