 # Break Even Analysis

Particulars Shoes Socks
Selling Price 645.00 36.00
Variable Cost 516.00 27.00
Fixed Cost 68,202.00
Note: Price
/Cost per pair

Estimate the following:
a) The Break even quantity for the products. Demonstrate how the units you have estimated would cover the Fixed costs.
b) If Rs (Rupees = Indian currency) 22,518 of the fixed costs consists of non cash expenses such as depreciation and amortization, the new cash break even point.

### Comments for Break Even Analysis

 Answer to Break Even Question - Company's Fixed Cost by: Anonymous The fixed cost would be \$13,500.

 break even question by: Anonymous A company sells a single product which has a contribution of 27 naira per unit and a contribution to sales ratio of 45%. This period it is forecast to sell 1000 units giving it a margin of safety of 13500 naira in sales revenue terms.Calculate: 1. The company's total fixed cost per period2. Using the fixed cost find the number of units to break even.3. The sales to achieve profit after tax of 10000 naira assumming a 25% tax rate.

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