contestada

Dilts Company has a unit selling price of $650, variable costs per unit of $460, and fixed costs of $326,800. Compute the break-even point in units using (a) the mathematical equation and (b) unit contribution margin.

Respuesta :

Zviko

Answer:

a.  1,720 units

b.  1,720 units

Explanation:

Breakeven Point is the level at which a company makes neither a profit nor a loss, therefore, the Profit will be $0 at this point.

(a) the mathematical equation

Profit = Contribution - Fixed Cost

$0 = ($650 - $460) × units sold - $326,800

Units Sold = $326,800 ÷ ($650 - $460)

                  = 1,720 units

(b) unit contribution margin

Break even Point (units) = Fixed Costs ÷ Contribution per unit

                                        = $326,800 ÷ ($650 - $460)

                                        = 1,720 units

Otras preguntas