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Calculate the breakeven point in units

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Question: 1. Barnyard Buddies incurred fixed costs of $12,500. The sales price per unit for their product is $50 and the variable cost per unit is $30. Show all calculations.

a) Calculate the contribution margin per unit.

b) Calculate the breakeven point in UNITS.

2. Expediate Delivery currently delivers packages for $ 9 each. The variable cost is $ 3 per package, and fixed costs are $ 75,000 per month. Compute the break-even point in both sales dollars and units under each of the following independent assumptions.

a. The costs and selling price are as just given.

b. Fixed costs are decreased to $ 60,000.

c. Expediate desires net income of $90,000. (Fixed costs are $75,000.)

Reference no: EM131880931

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