The following is given: Price Variable cost Fixed cost $8.00/unit $4.00/unit $50,000 a) Based on the given information, the break-even point in units = b) Based on the given information, the break-even point in dollars = c) The profit for a volume of 100,000 units = dollars (round your response to the nearest whole number). units (enter your response as a whole number). dollars (round your response to the nearest whole number).
The following is given: Price Variable cost Fixed cost $8.00/unit $4.00/unit $50,000 a) Based on the given information, the break-even point in units = b) Based on the given information, the break-even point in dollars = c) The profit for a volume of 100,000 units = dollars (round your response to the nearest whole number). units (enter your response as a whole number). dollars (round your response to the nearest whole number).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![**Break-Even Analysis and Profit Calculation**
**The following is given:**
- **Price:** $8.00/unit
- **Variable cost:** $4.00/unit
- **Fixed cost:** $50,000
**Questions:**
a) Based on the given information, the break-even point in units = [ ] units (enter your response as a whole number).
b) Based on the given information, the break-even point in dollars = [ ] dollars (round your response to the nearest whole number).
c) The profit for a volume of 100,000 units = [ ] dollars (round your response to the nearest whole number).
**Instructions for Calculations:**
1. **Break-Even Point in Units:**
- Formula: Break-even point (units) = Fixed Costs / (Price per unit - Variable Cost per unit)
- Use the given values for calculations.
2. **Break-Even Point in Dollars:**
- Formula: Break-even point (dollars) = Break-even point (units) * Price per unit
- Calculate based on the break-even point in units.
3. **Profit Calculation for 100,000 Units:**
- Formula: Profit = (Price per unit * Number of units) - (Variable Cost per unit * Number of units) - Fixed Costs
- Substitute 100,000 for the number of units to calculate profit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F4a44212c-b8b1-4ff0-bde6-3e570916b708%2F07a59753-d2c8-4fb1-aff0-54136fadd043%2Frpvgnig_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Break-Even Analysis and Profit Calculation**
**The following is given:**
- **Price:** $8.00/unit
- **Variable cost:** $4.00/unit
- **Fixed cost:** $50,000
**Questions:**
a) Based on the given information, the break-even point in units = [ ] units (enter your response as a whole number).
b) Based on the given information, the break-even point in dollars = [ ] dollars (round your response to the nearest whole number).
c) The profit for a volume of 100,000 units = [ ] dollars (round your response to the nearest whole number).
**Instructions for Calculations:**
1. **Break-Even Point in Units:**
- Formula: Break-even point (units) = Fixed Costs / (Price per unit - Variable Cost per unit)
- Use the given values for calculations.
2. **Break-Even Point in Dollars:**
- Formula: Break-even point (dollars) = Break-even point (units) * Price per unit
- Calculate based on the break-even point in units.
3. **Profit Calculation for 100,000 Units:**
- Formula: Profit = (Price per unit * Number of units) - (Variable Cost per unit * Number of units) - Fixed Costs
- Substitute 100,000 for the number of units to calculate profit.
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