0
If a firm has fixed costs of 20 000 variable cost per unit of 50 and a break even point of 5000 units the price is?
Wiki User
∙ 13y ago
We have to fine the Selling Price.
Given: BEP=5000 units VC=Rs.50/unit FC=Rs.20000
BEP=FC divided by Contribution/unit
therefore, contribution/unit = 20000 divided by 5000
= Rs.4/unit
therefore, selling price= variable cost - contribution/unit
= 20+4
= 24
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Can you calculate the fixed cost variable costs and break-even point for the program suggested in Appendix D?
Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.
Why is it important to separate variable and fixed costs?
it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.
What happens to the break even point if fixed costs increase but variable cost and price remain the same?
the break even point goes up
How do you determine break even point when the unit price isn't given?
if sales revenue is provided instead of unit price then breakeven point can be determine by deducting variable costs from sales revenue and so on dividing fixed cost with contribution margin.
How do you work out break even point?
To work out the break even point you have to do this equation → (fixed cost)÷(selling price−variable cost). For example the fixed cost is $10000, the selling price is $17 and the variable cost is $12. So you would do → (10000)÷(17−12) which would equal $2000.
What are the principles of break even analysis?
To calculate your break even point you need to total your fixed costs and your variable costs (separately) . The equation is fixed costs ÷ (price - variable costs). Variable costs are your costs associated with production. If u produce one additional unit variable cost will increase and fixed costs will not. When you reach your break even point you have covered all if your fixed costs (for the month, for example). All units sold after break even will bring net income for the period since your fixed costs are covered.
Can you calculate the fixed cost variable costs and break-even point for the program suggested in Appendix D?
Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.
What would you expect to be the effect of a reduction in variable cost on the break even position and why?
The Break Even Position(B.E.P.) is the point at which your sales cover your variable costs(contribution) and also your fixed costs but render no profits- 0 = Sales-Variable Costs-Fixed Costs If the above equation is satisfied, then the sales value is taken as break even point. So if a reduction in variable expenses occur, the break even point will also reduce.
Why is it important to separate variable and fixed costs?
it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.
What happens to the break even point if fixed costs increase but variable cost and price remain the same?
the break even point goes up
Using above data ; Determine the break-even?
To calculate the break-even point, you need to know the fixed costs, variable costs per unit, and the selling price per unit. Break-even point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit) Without specific values for fixed costs, selling price per unit, and variable cost per unit, I can't provide you with an exact break-even point. Please provide these values, and I'll be happy to help you calculate the break-even point.
What is the break-even point when variable costs are 20 percent of total revenue and fixed costs are 40 million per year?
Break even point = Fixed Cost / contribution margin ratio Variable cost = 20% So Contribution margin = 80% Breakeven point = 40000000 / .8 = 50000000
How is CVP impacted by changes in fixed and variable costs?
A change in variable cost affects the contribution margin ratio. A change in fixed cost affects the break-even point . An increase in these costs affect the firms profit.
How do you calculate the fixed cost per unit?
Learn to study your Business Studies curriculum properly. The fixed cost is the same regardless of the number of units produced. The variable costs are the costs of producing x number of units. The break-even point is where value of sales = fixed costs + variable costs.
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 fix cost per unit?
Learn to study your Business Studies curriculum properly. The fixed cost is the same regardless of the number of units produced. The variable costs are the costs of producing x number of units. The break-even point is where value of sales = fixed costs + variable costs.
Formula for break-even point?
Total fixed costs / selling price - variable cost/unit Break even points (in units) = Total fixed cost/CMPU Break even points (in Rs) = Total fixed cost/CM Ratio
