Barnes Enterprises sells premium headphones at a unit selling price of $750. The variable cost per unit is $520, and the company's fixed costs amount to $365,000. 1. Compute the break-even point in units using (a) the mathematical equation method. 2. Compute the break-even point in units using (b) the unit contribution margin method.
Barnes Enterprises sells premium headphones at a unit selling price of $750. The variable cost per unit is $520, and the company's fixed costs amount to $365,000. 1. Compute the break-even point in units using (a) the mathematical equation method. 2. Compute the break-even point in units using (b) the unit contribution margin method.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Answer the following requirements on these general accounting question
![Barnes Enterprises sells premium headphones at a unit selling price of
$750. The variable cost per unit is $520, and the company's fixed costs
amount to $365,000.
1. Compute the break-even point in units using (a) the mathematical
equation method.
2. Compute the break-even point in units using (b) the unit contribution
margin method.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc57024f2-0693-49c3-93cc-1f3c9ca1f963%2Ff6af9b14-5e97-4ac7-a1ce-f5b5fd2778da%2F31j2ugn_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Barnes Enterprises sells premium headphones at a unit selling price of
$750. The variable cost per unit is $520, and the company's fixed costs
amount to $365,000.
1. Compute the break-even point in units using (a) the mathematical
equation method.
2. Compute the break-even point in units using (b) the unit contribution
margin method.
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