Determine the break-even point in units and dollars

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Reference no: EM131332976

Exercise 1: Fixed versus variable cost behavior

Nasenko Company's cost and production data for two recent months included the following:
                           March    April
Production (units)   200       400
Rent                     $1,800   $1,800
Utilities                  $ 600    $1,200

Required

a.Separately calculate the rental cost per unit and the utilities cost per unit for both March and April.
b.Identify which cost is variable and which is fixed. Explain your answer.

Exercise 2: Break-even point

Agassi Corporation sells products for $90 each that have variable costs of $60 per unit. Agassi's annual fixed cost is $450,000.

Required

Determine the break-even point in units and dollars.

Exercise 3: Desired profit

Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo's product are $40 per unit, and the sales price is $64 per unit. Lindo desires to earn an annual profit of $40,000.

Required

Determine the sales volume in dollars and units required to earn the desired profit.

Attachment:- Project.xlsx

Reference no: EM131332976

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