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Accounting Calculations: Breakeven Points
Break-even point in units = Total fixed expenses/Contribution margin per unit
= 105,000/(50 - 30) = 5,250 units This solution is comprised of a detailed explanation to calculate the following:
1) break-even point in units
2) break-even point
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Finding the Break-Even Point in Units and Operating Leverage
Break-even point in units=Total fixed costs/(unit selling price-variable costs per unit)
Break-even point in units=$540,000/($180-$126)
Break-even point in units=$540,000/$54
Break-even point in units=10,000
b.
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Weighted-Average Contribution Margin and Break-even
Break-even point in units of Plain = Break-even point in units*portion of sales of Plain
Break-even point in units of Plain = 5,000*.60
Break-even point in units of Plain = 3,000 This solution illustrates how to compute the weighted-average contribution
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Computing Break-even Point and After-tax Target Profit
Break-even point in units = Fixed costs / (unit selling price - unit variable costs)
Break-even point in units = $240,000 / ($60 - ($900,000 / 20,000))
Break-even point in units = $240,000 / ($60 - $45)
Break-even point in units = $240,000 / $15
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Computing Break-Even Units and Sales Dollars
In this case, the break-even point in units=$25,000/($75-$25), or 500 units.
2. You can use either of two ways to compute the break-even point in sales dollars. First, compute the break-even point in units and multiply by the unit selling price.
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Handy Home: CVP analysis and break-even using composite unit
Selling price per composite unit $
Variable costs per composite unit $
Break-even point in composite units
Unit sales of windows at break-even point
Unit sales of doors at break-even point Exercise 5-14: CVP analysis using composite units L.O.
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Calculation of the break even point for Mower Manufacturing
20000 units
The break even point in Dollars =BEP in units * Sales price per unit=$$500,000.00
There is no difference in the break even under both the methods.
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Break even point and operating leverage
Break-even point in units = Total fixed cost/Contribution margin per unit
= 540,000/(180 - 126)
= 10,000 units
b) What is the dollar sales volume the firm must achieve in order to reach the break-even point?
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break-even point in units and dollars
Alternatively,
Contribution margin in % = $ 5 / $ 15 = 33.33%
Break even point in $ =Fixed cost / Contribution margin = $300,000/33.33% = $900,000 Determines break-even point in units and dollars.
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Calculating Break Even Point
167985 Calculating Break-Even Sample Problem Trying to calculate the accounting break-even and the cash break-even ponits. Have to ignore any tax effects in calculating the Cash Break-Even.