1.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The break-even point in unit sales assuming N does not hire the outside supplier.
2.
a.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The amount of profit with N earn assuming it produces and sells 18,000 units.
2.
b.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The amount of profit with N.
3.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
To calculate: The break-even point in unit sales.
4.
a.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The total unit sales would N need to achieve in order to equal the profit earned in requirement 2a.
4.
b.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The total unit sales would N need to achieve in order to attain a target profit of $16,500 per month.
4.
c.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The amount of profit will N earn if it sells 35,000 units per month.
4.
d.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The amount of net profit.
5.
Concept introduction:
Break-even point: Break-even point is the level of production at which the cost of production equals to the revenue for a product. It is the point at which the total cost and total revenue are equal, that means there is no gain or loss for the business. It is calculated by dividing the fixed cost of production by the contribution per unit of production.
The amount of net profit.
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Chapter 5 Solutions
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