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    Break Even Point in Unit Sales Dollar Sales

    Uploaded by

    drg
    The document discusses break-even analysis for a company. It calculates the break-even point in units and dollars for the original costs and revenues. It then calculates the new break-even point when fixed costs increase by $600. Finally, it calculates the unit sales and dollar sales needed to achieve a target profit of $8450 based on the costs and revenues.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Break Even Point in Unit Sales Dollar Sales

    Uploaded by

    drg
    56 views27 pages
    The document discusses break-even analysis for a company. It calculates the break-even point in units and dollars for the original costs and revenues. It then calculates the new break-even point when fixed costs increase by $600. Finally, it calculates the unit sales and dollar sales needed to achieve a target profit of $8450 based on the costs and revenues.

    Original Title

    module 2.xlsx

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    © © All Rights Reserved

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    The document discusses break-even analysis for a company. It calculates the break-even point in units and dollars for the original costs and revenues. It then calculates the new break-even point when fixed costs increase by $600. Finally, it calculates the unit sales and dollar sales needed to achieve a target profit of $8450 based on the costs and revenues.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    56 views27 pages

    Break Even Point in Unit Sales Dollar Sales

    Uploaded by

    drg
    The document discusses break-even analysis for a company. It calculates the break-even point in units and dollars for the original costs and revenues. It then calculates the new break-even point when fixed costs increase by $600. Finally, it calculates the unit sales and dollar sales needed to achieve a target profit of $8450 based on the costs and revenues.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 27

    Break even point in unit sales

    dollar sales
    selling price
    variable expense
    monthly fixed expe

    UNIT CM = SELLING - VARIABLE

    1) Break even point in unit sales

    profit =
    0 =
    0
    15000
    2500

    2) BREAK EVEN POINT IN DOLLAR

    = 2500
    55000

    3) fixed expense increased by 600


    break even point in unit sales?

    selling
    variable
    monthly fixed

    0
    2600

    Break een point in dollar sales


    57200
    22
    16
    15000

    M = SELLING - VARIABLE

    even point in unit sales

    unit cm x Q - fixed expense


    (22-16) Q - 15000
    6Q - 15000
    6Q
    = Q

    K EVEN POINT IN DOLLAR SALES

    x 22

    expense increased by 600


    en point in unit sales?

    22
    16
    15600

    = (22-16) xQ #NAME?

    en point in dollar sales


    Unit sales for target profit

    Profit= Unit CM x Q - Fixed Expens

    1) Target profit $8450

    8450=(134-67) x Q -31750
    8450
    40200
    600

    2) dollar sales for unit profit

    Profit= Unit CM x Q - Fixed Expens

    9700
    9700
    41450
    618.6567164
    619
    619

    82946
    it sales for target profit
    selling price 134
    ofit= Unit CM x Q - Fixed Expense variable expe 67
    monthly fixed 31750

    Target profit $8450 8450

    50=(134-67) x Q -31750
    67 x Q - 31750
    = 67Q
    = Q

    dollar sales for unit profit 9700

    ofit= Unit CM x Q - Fixed Expense

    = (134-67) x Q- fixed expense


    = 67Q - 31750
    = 67Q -
    =Q

    x (selling price) 134

    dollar sales needed


    Net operating income

    Sales 39000 312000 8


    variable expenses 195000 5
    contribution margin 117000 3
    fixed expenses 50000
    Net operating income 67000

    1) unit sales increse 13%

    Sales 44070 352560 8


    variable expenses 220350 5
    contribution margin 132210 3
    fixed expenses 50000
    Net operating income 82210

    2) selling price decreases by 1.4 units sold increases by 18%


    Sales 46020 303732 6.6
    variable expenses 230100 5
    contribution margin 73632 1.6
    fixed expenses 50000
    Net operating income 23632

    3)selling price increases 1.4 units sold decrease 0.96


    fixed expenses increase 7000
    Sales 37440 351936 9.4
    variable expenses 187200 5
    contribution margin 164736 4.4
    fixed expenses 57000
    Net operating income 107736

    4) selling price increase 1.1


    variable expe 0.2
    units sold decrease 0.88
    Sales 34320 302016 8.8
    variable expenses 178464 5.2
    contribution margin 123552 3.6
    fixed expenses 50000
    Net operating income 73552
    its sold increases by 18% 1.18
    In Dollar sales 25000 x $58

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