A compnay distributes a single product whose selling price is $16 per unit and whose variable expense is $12 per unit. The compnays monthly fixed expense is $10,800. Calculate the company's break even point in unit sales. Calculate the copmany's break even point in dollar sales. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? in dollar sales? Break-Even point in unit sales _________________baskets Break-Even point in dollar sales Break-Even point in unit sales _________________baskets Break-Even point in dollar sales
A compnay distributes a single product whose selling price is $16 per unit and whose variable expense is $12 per unit. The compnays monthly fixed expense is $10,800.
Calculate the company's break even point in unit sales. Calculate the copmany's break even point in dollar sales. If the company's fixed expenses increase by $600, what would become the new break-even point in unit sales? in dollar sales?
| Break-Even point in unit sales | _________________baskets |
| Break-Even point in dollar sales | |
| Break-Even point in unit sales | _________________baskets |
| Break-Even point in dollar sales |
Break even point :— It is the point of production where total cost is equal to total revenue. At this point, the profit is equal to zero. At this point, fixed cost is equal to contribution margin. Break-even point in units is calculated by dividing fixed cost by contribution margin per unit. Break-even point in sales revenue is calculated by dividing fixed cost by contribution margin ratio.
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