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 - Problems - Page 100: 3-36(2)

Answer

Breakeven Point (in units) = $214,500 \div $16.50 ≈ 13,000 units

Work Step by Step

Breakeven Point in Units for 2014: Breakeven Point (in units) = Total Fixed Costs $\div$Contribution Margin per Unit Contribution Margin per Unit = Selling Price per Unit - Variable Cost per Unit Contribution Margin per Unit = 35 - 18.50 = 16.50
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