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 99: 3-34(1)

Answer

Breakeven Point (in units) = $4,000 \div$250 = 16 children

Work Step by Step

Breakeven Point (in units) = Fixed Costs $\div$ Contribution Margin per Child Contribution Margin per Child = Revenue per Child - Variable Cost per Child Contribution Margin per Child = 400 - 150 = 250
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