Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $60 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit.
Problem 1. Calculate the break even number of units if the fixed expenses are $7,000 and the contribution margin is $60 per unit. 2. Calculate the break even sales dollars if the fixed expenses are $7,000 and the contribution ratio is 40%. 3. Calculate the break even number of units with a target profit of $120,000 if the fixed expenses are $15,000 and the contribution margin is $60 per unit.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Complete the following 3 Wk 3 Financial Exercises: Problem
Set 2, Part 2 problems using the following ratios:
2
Sales level at which operating income is zero
o f sales above breakeven. then profit
o If sales below breakeven. then loss
o Fixed expenses = total contribution marain
Total sales = total expenses
Break Even Point: Unit Sold = Fixed expenses + Operating
Income / Contribution Margin per unit
Break Even Point: Sales $ = Fixed expenses + Operating
Income / Contribution Margin Ratio
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Problem
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1. Calculate the break even number of units if the fixed
expenses are $7,000 and the contribution margin is $60 per
unit.
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2. Calculate the break even sales dollars if the fixed expenses
are $7.000 and the contribution ratio is 40%.
3. Calculate the break even number of units with a target profit
of $120,000 if the fixed expenses are $15,000 and the
contribution marqin is $60 per unit.
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