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Break Even Point in Unit Sales Dollar Sales

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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drg
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110 views27 pages

Break Even Point in Unit Sales Dollar Sales

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.

Uploaded by

drg
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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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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