Fixed Costs, Variable Costs, and Break-Even Point

Fixed Costs, Variable Costs, and Break-Even Point - Running...

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Running head: FIXED COST, VARIABLES, , BREAK EVEN POINTS 1 Fixed cost, variables, break even points Stephenie Hyatt HSM260 September 19, 2010 Desha R. Dickson
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FIXED COST, VARIABLES, , BREAK EVEN POINTS 2 Fixed cost, variables break even points During the sixth month of the fiscal year, the program director of the Westchester Home- Delivered Meals (WHDM) program decides to again recomputed fixed costs, variable costs, and the BEP using the high–low method. Here are the number of meals served and the total costs of the program for each of the first six months: Month Meals Served Total Costs July 3,500 $20,500 August 4,000 22,600 September 4,200 23,350 October 4,600 24,500 November 4,700 25,000 December 4,900 26,000 Recompute fixed costs, variable costs, and the BEP. What are the variable costs? What are the fixed costs? How many meals will the WHDM program need to provide during the fiscal year to reach the BEP? How much profit will the program earn if it completes its 45,000-meal contract with the City of Westchester? Variable Cost =
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Fixed Costs, Variable Costs, and Break-Even Point - Running...

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