COST ACCOUNTING
BREAK EVEN POINT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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According to the following data (Selling Price= $1000, Variable Cost= $268, Fixed Cost= $12.000) Calculate the breakeven ***3 minutes to answer***
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16.39
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16.93
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19.36
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13.69
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Explanation:
Detailed explanation-1: -To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin. Here’s What We’ll Cover: What Is the Break-Even Point?
Detailed explanation-2: -Break-even Sales = Total Fixed Costs / (Contribution Margin) Contribution Margin = 1-(Variable Costs / Revenues)
Detailed explanation-3: -What is the selling price per unit if break even point is 12000 units? ₹ 5. The new selling price should be ₹100+5 =₹105.
There is 1 question to complete.