income statement total per unit Units 44,000 1 Sales $220,000 $5.00 Cost of Sales(variable expenses) 88,000 2.00 Gross Margin 132,000 3.00 Operating Costs(fixed expneses) 125,500 2.85 Net Profit 6,500 15 Now do this activity a second time with a higher selling price. Calculate break-even at a $7.00 selling price. Using the information from the above income statement, calculate the break-even per unit, the gross margin percent, and the break-even total sales. Calculate break-even based on units. Fixed Costs/ (Sales price per unit – Variable costs per unit) = Break Even in Units Calculate break-even based on Total Sales. Gross Margin/ Sales = Gross Margin % Fixed Expenses/ Gross Margin % = Break-Even in total sales dollars
income statement
total per unit
Units 44,000 1
Sales $220,000 $5.00
Cost of Sales(variable expenses) 88,000 2.00
Gross Margin 132,000 3.00
Operating Costs(fixed expneses) 125,500 2.85
Net Profit 6,500 15
Now do this activity a second time with a higher selling price. Calculate break-even at a $7.00 selling price. Using the information from the above income statement, calculate the break-even per unit, the gross margin percent, and the break-even total sales.
Calculate break-even based on units.
Fixed Costs/ (Sales price per unit – Variable costs per unit) = Break Even in Units
Calculate break-even based on Total Sales.
Gross Margin/ Sales = Gross Margin %
Fixed Expenses/ Gross Margin % = Break-Even in total sales dollars
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