now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker assignments&takeAssign

Question

now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker assignments&takeAssignmentSessionl; t-take&inprogress;=false lems eBook Show Me How Calculator Break-Even Sales Currently, the unit selling price of a product is $260, the unit variable cost is $210, and the total fixed costs are $560,000. A proposal is being evaluated to increase the unit selling price to $290 a. Compute the current break-even sales (units) units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased to the proposed $290, and all costs remain constant. units Next Previous Check My Work 2 more Check My Work uses remaining

Explanation / Answer

Breaionk Even Sale= Total fixed assets/Contribution per unit Current Anticipated Selling Price of product $260 $290 Less: Variable cost of product $210 $210 Contribution per unit $50 $80 ( Sale price - contribution per unit) Fixed Cost $560,000 $560,000 Break Even Sale 11200 7000 ($560000/$50) ($560000/$80) Sales Mix and break even sale Baseball bats Baseball Gloves Total Selling price per unit $40 $100 Less: Variable Cost per unit $30 $60 Contribution per unit $10 $40 ( Sale price per unit - variable cost) Sale Mix 60% 40% Contribution for sale mix $6 $16 $22 ($10*60%) ($40*40%) Fixed Cost $345,400 Break even Sale unit of combined product ($345400/22) 15700 (Fixed cost/ contribution sale mix) Break Even points of each products Baseball bats Baseball Gloves Total Contribution of each product $10 $40 Fixed cost of each product( 60% : 40%) 207240 138160 345400 Break Even sale unit $20,724 $3,454 $24,178

Related Questions

Navigate

• Browse (All)
• Browse N
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.