
A break-even point is the point at which there is no profit or loss for the company. At break-even point total of fixed costs and variable costs is equal to the total revenue. The calculation of break-even point is very important for every business because it tells that how much of the minimum quantity will be required to produce and sell to meet the fixed and variable cost.
Single product break-even analysis means to calculate break-even point for a single product i.e. no profit or loss for that particular product.
Multi product break –even point analysis means calculation of break-even point point of no profit or loss for the overall company or all products.
To determine:
In the given question, we have to determine that Apple co. should use single product break-even or multi-product break-even analysis.

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Chapter 21 Solutions
Loose Leaf for Fundamentals of Accounting Principles and Connect Access Card
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- Calculate the amount merchandise inventory?arrow_forwardLast year, Orion Enterprises had the following results: ⚫ Sales = $800,000 Variable expenses = $480,000 Fixed expenses = $120,000 a. What is the degree of operating leverage at the current level of sales? b. If sales increase by 10% next year, by how much will net operating income increase (in dollars)?arrow_forwardWhat is the company's return on investment?arrow_forward
- Prada Manufacturing had a Work in Process balance of $72,000 on January 1, 2022. The year-end balance of Work in Process was $95,000, and the Cost of Goods Manufactured was $730,000. Use this information to determine the total manufacturing costs incurred during the fiscal year 2022. Right answerarrow_forwardAccount subject probarrow_forwardBrightline Inc. uses direct labor hours to apply overhead. • Estimated DLH = 15,000 hours • Estimated overhead = $360,000 Actual DLH = 14,500 hours Actual overhead = $330,000 Determine whether overhead is overapplied or underapplied.arrow_forward
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