{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACCT 206 Week 4

# ACCT 206 Week 4 - E1919 ,variablecosts,andfixedcosts Change...

This preview shows pages 1–2. Sign up to view the full content.

E19-19 Impact on breakeven point if sale price, variable costs, and fixed costs Change Dependable Drivers Driving School charges \$250 per student to prepare and administer written and driving  tests. Variable costs of \$100 per student include trainers' wages, study materials, and gasoline. Annual fixed  costs of \$75,000 include the training facility and fleet of cars. Requirements:  I.  For each of the following independent situations, calculate the contribution margin per unit and the breakeven  point in units by first referring to the original data provided: a. Breakeven point with no change in information. Contribution Margin Per Unit = Sales Per Unit – Variable Costs Per Unit Contribution Margin Per Unit = \$250 - \$100 Contribution Margin Per Unit = \$150 Break Even Point in Units = Total Fixed Costs  ÷  Contribution Margin Per Unit Break Even Point in Units = \$75,000  ÷  \$150 Break Even Point in Units = 500 Units b. Decrease sales price to \$220 per student. Contribution Margin Per Unit = Sales Per Unit – Variable Costs Per Unit Contribution Margin Per Unit = \$220 - \$100 Contribution Margin Per Unit = \$120

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern