- Messages
- 1,080
- Reaction score
- 3,160
- Points
- 273
Im facing a huge problem can anyone help me pls
http://papers.xtremepapers.com/CIE/Cambridge International A and AS Level/Accounting (9706)/9706_s07_qp_2.pdf
Can ull give me the answer of B where the break even point shud be calculated in dollars
My answer is correct for household but not for Buisiness and factory
this is for business
break even point = fixed costs/ contribution per unit
contribution per unit=selling price-variable costs
selling price = 108000/900 =120
vc per unit = (45000+28800+13500)/900=97
therefore breakeven = 27000/(120-97)
=1174 units
1174 * 120 (selling price) = $140880 breakeven in value
do the same for factory!