Fixed+Costs,+Variable+Costs,+and+BEP

Fixed+Costs,+Variable+Costs,+and+BEP - 20x = 9900 + 4.50x...

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Assignment: Fixed Costs, Variable Costs, and Break-Even Point Exercise 10.1 High Month – December Meals Served – 4,900 Cost - \$26,000 Low Month – July Meals Served – 3,500 Cost - \$20,500 Differences Meals Served – 1,400 Cost - \$5,500 Variable cost per meal served - \$3.93 Variable cost - \$13,755 Fixed cost - \$ 6,745 Monthly BEP – 3,666 Meals BEP for Fiscal Year – 43,992 Meals Profit at 45,000 meal - \$1,854.72 Exercise 10.2 Fixed Costs - \$6,000 + \$3,900 = \$9,900 Variable Cost per Unit - \$4.50 Service Price (price per unit) - \$20

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Unformatted text preview: 20x = 9900 + 4.50x 15.50x = 9900 X = 639 The BEP for the year is 639 subscriptions. This is feasible for the two employees because they are thought to be able to handle 650 subscriptions without hiring additional help. Some slack capacity will exist (not much). To run 639 subscriptions per year will cost \$2,875.50. That plus the fixed cost of \$9,900.00 comes to \$12,775.50. at \$20.00 per subscription 639 will bring in \$12,780.00 and leave a small profit of \$4.50....
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This note was uploaded on 11/28/2010 for the course A a taught by Professor A during the Spring '09 term at Punjab Engineering College.

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Fixed+Costs,+Variable+Costs,+and+BEP - 20x = 9900 + 4.50x...

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