Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Discover in-depth answers to your questions from a wide network of experts on our user-friendly Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

Break-Even Point Freese Inc. sells a product for 650 per unit. The variable cost is 455 per unit, while fixed costs are 4,290,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $655 per unit. a. Break-even point in sales unitsfill in the blank 1 units b. Break-even point if the selling price were increased to $655 per unit

Sagot :

facundobuzzetti

Answer:

Results are below.

Explanation:

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 4,290,000 / (650 - 455)

Break-even point in units= 22,000

Now, if the selling price is $655, the break-even point in dollars is:

Break-even point (dollars)= fixed costs/ contribution margin ratio

Break-even point (dollars)= 4,290,000 / [(655 - 455) / 655]

Break-even point (dollars)= $14,049,750

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.