# HW2 - SP = \$60/unit Answer: Q = \$35,000 / (\$60 - \$34) =...

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Brittany Braud Management 368 Homework 2 June 6, 2011 1. Chapter 3, Problem #12: FC = \$40,000 VC = \$20/unit 1) If SP = \$25, what is the break-even sales volume? Answer: Q = \$40,000 / (\$25 - \$20) = 8,000 units 2) If Q = 10,000 units and SP = \$25, what will be the contribution to profit? Answer: 2,000 units x \$5/unit = \$10,000 2. Additional Problem: What is the break-even volume? FC = \$25,000 + \$10,000 VC = \$4/unit + \$30/unit
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Unformatted text preview: SP = \$60/unit Answer: Q = \$35,000 / (\$60 - \$34) = 1,346 units 3. Additional Problem: FC = \$250,000 SP = \$50/unit Q = 20,000 units 1) How low must its VC be to break even? Answer: VC = \$50 (\$250,000 / 20,000 units) = \$37.50 2) Assuming VC = \$35, what does the SP have to be to break even? Answer: SP = (\$250,000 / 20,000 units) + \$35 = \$47.50...
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## This note was uploaded on 10/17/2011 for the course MNGT 368 taught by Professor Curthurds during the Spring '08 term at Nicholls State.

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