blanc Inc. sells a product for $67 per unit. The variable cost is $41 per unit, while fixed costs are $160,888. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $75 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $75 per unit fill in the blank 2 units

blanc Inc. sells a product for $67 per unit. The variable cost is $41 per unit, while fixed costs are $160,888. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $75 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $75 per unit fill in the blank 2 units

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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In a cost-volume-profit analysis, explain what happens at the break-even point and why companies do not want to remain at the break-even point. Marlin Motors sells a single product with a selling price of $400 with variable costs per unit of $160. The company’s monthly fixed expenses are $36,000. A. What is the company’s break-even point in units? B. What is the company’s break-even point in dollars? C. Prepare a contribution margin income statement for the month of November when they will sell 130 units. D. How many units will Marlin need to sell in order to realize a target profit of $48,000? E. What dollar sales will Marlin need to generate in order to realize a target profit of $48,000? F. Construct a contribution margin income statement for the month of February that reflects $200,000 in sales revenue for Marlin Motors.
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