19-2B Break-even sales under present and proposed conditions
1. Determine for 2012 the total fixed costs and the total variable costs.
- Fixed costs: $416,000
- Variable costs: $720,000
2. Determine for 2010 (a) the unit variable cost and (b) the unit contribution margin.
- Unit variable cost: $24
- Unit contribution margin: $32
3. Compute the break-even sales (units) for 2012.
- 13,000 units
4. Compute the break-even sales (units) under the prop