MANAGERIAL ACCOUNTING F/MGRS.
MANAGERIAL ACCOUNTING F/MGRS.
6th Edition
ISBN: 9781264100590
Author: Noreen
Publisher: RENT MCG
Question
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Chapter 2, Problem 2.7E

1.

To determine

Concept introduction:

Breakeven point the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

  Breakeven point (Units) =  Total Fixed Cost(Sales price per unit  Variable cost per unit)

Breakeven point in $ is calculated with the help of following formula:

  Breakeven point ($) = Total Fixed CostsContribution Margin Ratio 

To calculate: the units sales needed to attain the desired profits.

2.

To determine

Concept introduction:

Breakeven point the level of output at which sales is equal to the total cost and there is no profit or loss. Breakeven point in units is calculated with the help of following formula:

  Breakeven point (Units) =  Total Fixed Cost(Sales price per unit  Variable cost per unit)

Breakeven point in $ is calculated with the help of following formula:

  Breakeven point ($) = Total Fixed CostsContribution Margin Ratio 

To calculate: the dollar sales needed to attain the desired profits.

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