Cost Accounting (15th Edition)

Published by Prentice Hall
ISBN 10: 0133428702
ISBN 13: 978-0-13342-870-4

Chapter 3 - Cost-Volume-Profit Analysis - Assignment Material - Exercises - Page 95: 3-22(2)

Answer

This question test your skills of Break-Even equation. Make sure to understand the mechanics of how to rearrange the equation to find out the missing values.

Work Step by Step

Fixed Costs 456,000 Sales price 9.5 variable costs 3.8 contribution margin 5.7 break even point (# of customers) = 456,000/5.7 = 80,000 Breakeven point (in $) = 80,000 customers * 9.5 per customer = 760,000
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