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 101: 3-41(2)

Answer

Breakeven Point (in units) = $29,166.67 \div $15 ≈ 1,944.44

Work Step by Step

arget Operating Income = Expected Sales - Total Costs Total Costs = Total Fixed Costs + Target Operating Income Total Costs = 24,666.67 + 4,500 = 29,166.67 Breakeven Point (in units) = Total Costs $\div $Contribution Margin per Unit
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