When a company had sales revenue of $600 000, its variable costs were $300 000.
At the break-even point, its sales were $400 000.
How much profit did it make when sales were $600 000?
A business has total fixed costs of $240000. Products have a unit selling price of $25 and a unit
variable cost of $15.
How many units need to be sold to break even?
Which statements identify a disadvantage of break-even analysis?
1 It does not show the effect of changes in output on the break-even point.
2 It is assumed that all costs can be split between fixed and variable.
3 It makes it difficult to decide the profitability of a product at different levels of activity.
How is the margin of safety calculated?
A actual contribution less budgeted contribution
B actual profit less budgeted profit
C budgeted contribution less break-even point
D budgeted sales less break-even point
A product has a variable cost of $31.32 per unit. Total fixed costs are $93 600.
When production is 13000 units the margin of safety is 5000 units.
What is the selling price per unit?