01_Problems_05
By extracting the information:
Annual fixed cost is $18,000
Variable cost is $0.90
Selling price is $3.20 per piece
Break-even point is 7,826.09 cupcakes
Graphic representation of break-even volume
Break-even point:It is a point where the a
01_Problems_06
By extracting the information:
Fixed cost is $25,000
Variable cost per pound is $0.15
Selling price is $0.40 per pound
Break-even volume is 100,000
Graphic representation of break-even volume
Break-even point:It is a point where the amount
01_Problems_12
By extracting the information:
The price of the fertilizer increases from $0.40 per pound to $0.60 per pound
Break-even point
Break-even point:It is a point where the amount of revenue and expense is equal and the
profit is zero.
Formula:
Z
01_Problems_11
By extracting the information:
Selling price of cupcakes changes from $3.20 to $2.75
Break-even point
Break-even point:It is a point where the amount of revenue and expense is equal and the
profit is zero.
Formula:
Z vp c f vcv
Where,
Z pro
01_Problems_10
By extracting the information:
Maximum operating capacity is 120,000 pounds
Break-even volume as percentage of maximum operating capacity
Break-even point:It is a point where the amount of revenue and expense is equal and the
profit is zero
01_Problems_09
By extracting the information:
Maximum operating capacity is 25,000 yards
Break-even volume as percentage of maximum operating capacity
Break-even point:It is a point where the amount of revenue and expense is equal and the
profit is zero.
01_Problems_08
By extracting the information:
Maximum operating capacity is 12,000 cupcakes
Break-even volume as percentage of maximum operating capacity
Break-even point:It is a point where the amount of revenue and expense is equal and the
profit is zer
01_Problems_07
By extracting the information:
Fixed cost is $25,000
Variable cost is $10 per doll
Selling price is $30 per doll
Break-even point
Break-even point:It is a point where the amount of revenue and expense is equal and the
profit is zero.
Formul
01_Problems_04
By extracting the information:
Fixed cost is $25,000
Variable cost per pound is $0.15
Selling price is $0.40 per pound
Break-even volume
Break-even point:It is a point where the amount of revenue and expense is equal and the
profit is zero.
01_Problems_02
By extracting the information:
Annual fixed cost is $18,000
Variable cost is $0.90
Selling price is $3.20 per piece
(a)
Total cost, total revenue, and profit
If the total number of cupcakes sold is 12,000, the computations will be as follow