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What is the break even sales in units if a firm sells units at 40 each variable costs per unit are 10 and total fixed costs equal 120000?
MarkHoltzman
To determine the break even sales in units, divide total fixed costs by the contribution margin per unit. Contribution margin per unit equals sales price less variable costs.
Here, contribution margin per unit equals $30 each (i.e. $40 less $10). Total fixed costs equal $120,000. Therefore, the break even sales in units would equal $120,000 / $30 or 40,000 units.
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∙ 11y ago
vdonkor464
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What is the break even in units if a firm sells 20000 units at 40 each variable costs per unit are 10 and total fixed costs equal 120000?
1. Breakeven point = fixed cost/ contribution margin ratio contribution margin ratio: (sales - variable cost)/sales Sales = 20000 * 40 = 800000 Less: Variable cost = 20000 * 10 = 200000 Contribution margin = 600000 Contribution margin ratio = 600000/800000 = .75 Breakeven point in dollars = 120000/.75 = $160000 breakeven point in units = 160000 / 40 = 4000
What is the total revenue at break even point if Ace corporation's variable costs are equal to 43 percent of sales revenue and their fixed costs per month are 600000?
Revenue at BREAK EVEN point is $0.00
How do you calculate transfer pricing?
The transfer price should be equal to the variable costs of the goods or services, plus the contribution margin per unit that is lost. =variable costs+(selling price-variable costs)
Produce 60000 variable costs equal 50 percent fixed costs total 120000 what price stero sold to achieve EBIT of 95000?
Breakeven point = Fixed cost + EBIT / contribution margin ratio Contribution margin ratio = sales price - variable cost Contribution margin ratio = 1 - 0.5 = 0.5 or 50% Breakeven point = 215000 / .5 = 430000
What are examples of total costs?
In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.
What is the break even in units if a firm sells 20000 units at 40 each variable costs per unit are 10 and total fixed costs equal 120000?
1. Breakeven point = fixed cost/ contribution margin ratio contribution margin ratio: (sales - variable cost)/sales Sales = 20000 * 40 = 800000 Less: Variable cost = 20000 * 10 = 200000 Contribution margin = 600000 Contribution margin ratio = 600000/800000 = .75 Breakeven point in dollars = 120000/.75 = $160000 breakeven point in units = 160000 / 40 = 4000
What is happening to average variable costs when they equal marginal costs?
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
What is the total revenue at break even point if Ace corporation's variable costs are equal to 43 percent of sales revenue and their fixed costs per month are 600000?
Revenue at BREAK EVEN point is $0.00
How do you calculate transfer pricing?
The transfer price should be equal to the variable costs of the goods or services, plus the contribution margin per unit that is lost. =variable costs+(selling price-variable costs)
Produce 60000 variable costs equal 50 percent fixed costs total 120000 what price stero sold to achieve EBIT of 95000?
Breakeven point = Fixed cost + EBIT / contribution margin ratio Contribution margin ratio = sales price - variable cost Contribution margin ratio = 1 - 0.5 = 0.5 or 50% Breakeven point = 215000 / .5 = 430000
Can total revenues and total variable costs be exactly equal?
Yes. Actually this means the company has zero gross profit. If on top of variable costs, there are fixed costs, the company will turn a loss.
Does contribution margin equal Sales-variable costs?
Contribution margin is computed as sales revenue minus variable expenses
What is 8 percent of 120000?
To find 8 percent of a number, multiply the number by 0.08. In this instance, 0.08 x 120000 = 9600. Therefore, 8 percent of 120000 is equal to 9600.
What is 7 percent of 120000?
To find 7 percent of a number, multiply the number by 0.07. In this instance, 0.07 x 120000 = 8400. Therefore, 7 percent of 120000 is equal to 8400.
Is twelve ten thousands equal to 120000?
12
What are examples of total costs?
In a perfectly competitive market, all n firms are equal. Thus, the market total cost is the total cost (TC) of one firm multiplied by the amount of n firms in the market Total Market Cost =Variable Costs and fixed costs ...Fixed costs plus variable costs.
Is 120 kg equal to 12000 grams?
120x1000=120000 grams
