This document contains 5 problems related to break-even analysis for different companies. Each problem provides information on the selling price per unit, variable costs per unit, and total fixed costs. It then asks questions to calculate key break-even metrics like the break-even point in units, profits at different sales volumes, total costs, and how costs would need to change for the company to break-even at a given sales level.
This document contains 5 problems related to break-even analysis for different companies. Each problem provides information on the selling price per unit, variable costs per unit, and total fixed costs. It then asks questions to calculate key break-even metrics like the break-even point in units, profits at different sales volumes, total costs, and how costs would need to change for the company to break-even at a given sales level.
This document contains 5 problems related to break-even analysis for different companies. Each problem provides information on the selling price per unit, variable costs per unit, and total fixed costs. It then asks questions to calculate key break-even metrics like the break-even point in units, profits at different sales volumes, total costs, and how costs would need to change for the company to break-even at a given sales level.
This document contains 5 problems related to break-even analysis for different companies. Each problem provides information on the selling price per unit, variable costs per unit, and total fixed costs. It then asks questions to calculate key break-even metrics like the break-even point in units, profits at different sales volumes, total costs, and how costs would need to change for the company to break-even at a given sales level.
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BREAK-EVEN ANALYSIS
ASSIGNMENT # 1
Problem Solving:
1. A factory sells a product at $ .80 per unit. The VC is $.60 per unit. The total FV is $ 12,000. a.) The break-even point in units of sales b.) Profit when sale are 10,000 units c.) TC when sales are 5,000 units d.) The amount of which the FC will have to decrease in order for the firm to break-even at a sales volume of 4,000 units. Assume SP and VC remain the same.
2. ABC Co. sells it product at $16 per unit. The VC is $6 and the FC is $2,000. Find each of the following: a. TR, TC and profit functions b. No. of units to be sold if profit is P5,000 c. Profit when sales are 800 units d. The BEP e. Number of units to sell to recover the FC
3. A manufacturer sells his product at $ 5 per unit.
a. Find the TR if the volume of sales is 1,800 units b. If the FC is $ 3,000. Find the TC when the VC per unit is $3. c. Suppose that the VC per unit is 70% of SP, Find the TC when FC is $5,000 d. If VC is 20% of the SP and FC is $1,000. Find the BEP.
4. A business firm produces and sells particular product. VC is $30 per unit. SP is $40 per unit. FC is $60,000. Determine the following: a. Profit when sales are 10,00 units b. The BEP quantity and revenue c. Sales when are at $9,000 d. The amount by which FC will have to be decreased or increased, to allow the firm to break-even at sales volume of 500 units.VC and SP per unit remain constant e.) The volume of sales to cover the FC
5. A firm sells its product at $6 per unit. The product has a variable cost of $3 per unit and the company’s FC is $9,000. Determine each of the following: a. TR, TC and profit functions b. Sales volume when profit is $9,000 c. Profit when sales are 600 units d. Break-even revenue and quantity e. The amount of which the VC per unit has to be decrease for the firm to break-even at 2,000 units. Assume the SP and FC remain constant f. The new SP in order to break-even at 300 units, assuming that FC and VC remain constant. f. Number of units to sell to cover the FC
