Solution-Calculate the break-even point in hours for the

Calculate the break-even point in hours for the firm

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Reference no: EM132875466

Question - CVP Analysis - The National, Inc. provides support center services of two types: 1 and 2.

	1	2	Total
Total Revenues	$20,000	$45,000	$65,000
Total Variable Costs	$10,000	$15,000	$25,000
Total Fixed Costs	$6,000	$12,000	$18,000

Activities are measured in hours.

The sales price per hour for 1 is $100 per hour, while the sales price per hour for 2 is $150.

The variable cost per hour for both 1 and 2 is $50.

The National has one location. Further, the computers and other communication equipment are shared by both service types. Fixed costs are allocated to the two types based on an estimate first implemented five years earlier, and managers question the reliability of fixed cost estimates.

Required - Use the provided information to calculate the break-even point in hours for the firm as a whole.

Reference no: EM132875466

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Calculate the break-even point in hours for the firm

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