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28 Sep 2019
peek company is considering the production of a new product. theexpected variable cost is 48.75 per unit. annual fixed cost areexpected to be 650,000 . the anticipated sales price is $ 65each.
determine the break even point in units and dollars using each ofthe following :
1. equation method.
2.contribution margin per unit approach.
3. contribution margin ratio approach.
peek company is considering the production of a new product. theexpected variable cost is 48.75 per unit. annual fixed cost areexpected to be 650,000 . the anticipated sales price is $ 65each.
determine the break even point in units and dollars using each ofthe following :
1. equation method.
2.contribution margin per unit approach.
3. contribution margin ratio approach.
determine the break even point in units and dollars using each ofthe following :
1. equation method.
2.contribution margin per unit approach.
3. contribution margin ratio approach.
Patrina SchowalterLv2
28 Sep 2019
Related questions
In the month of March, Style Salon services 610 clients at anaverage price of $180. During the month, fixed costs were $25,758and variable costs were 70% of sales.
(a) Determine the contribution margin in dollars, per unit, andas a ratio.
| Contribution margin | $____________? |
| Contribution margin per unit | $____________? |
| Contribution margin ration | ____________%? |
(b) Using the contribution margin technique, compute thebreak-even point in dollars and in units.
| Break-even sales | $______________? |
| Break-even sales | _____________ units? |
