Break Even Analysis

Please help me with the following break even analysis question:


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

Click here to add your own comments

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 period

2. 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.

Click here to add your own comments

Return to Ask a Question About This Lesson!.









© Copyright 2009-2021 Michael Celender. All Rights Reserved. 
Click here for Privacy Policy.