provide answer in this account questions IF THE UNIT SELLING PRICE IS $16, THE UNIT VARIABLE COST IS$12, AND FIXED COSTS ARE $160,000, WHAT ARE THEBREAKEVEN SALES (UNITS)?A. 5,714 UNITSB. 10,000 UNITSC. 13,333 UNITSD. 40,000 UNITS

Key Information GivenUnit Selling Price: $16.Unit Variable Cost: $12.Fixed Costs: $160,000. Step 1:…

Answered: IF THE UNIT SELLING PRICE IS $16, THE…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter14: Capital Structure Management In Practice

Section14.A: Breakeven Analysis

Problem 7P

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Contribution margin Waite Company sells 250,000 units at 120 per unit. Variable costs are 78 per unit, and fixed costs are 8,175,000. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) operating income.
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Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is 6. Total fixed cost is 10,000. Required: 1. Prepare a CVP graph with Units Sold as the horizontal axis and Dollars as the vertical axis. Label the break-even point on the horizontal axis. 2. Prepare CVP graphs for each of the following independent scenarios: (a) Fixed cost increases by 5,000, (b) Unit variable cost increases to 7, (c) Unit selling price increases to 12, and (d) Fixed cost increases by 5,000 and unit variable cost is 7.
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IF THE UNIT SELLING PRICE IS $16, THE UNIT VARIABLE COST IS $12, AND FIXED COSTS ARE $160,000, WHAT ARE THE BREAKEVEN SALES (UNITS)? A. 5,714 UNITS B. 10,000 UNITS C. 13,333 UNITS D. 40,000 UNITS