Relevance of break-even analysis for an organization

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a) What is the relevance of Break- Even Analysis for an Organization?

b) Banga Industries, a producer of specialty cards, wants you to complete several calculations based on the information given:

Selling Price/Unit = $19.50 Variable Cost/Unit = $15.50 Total Fixed Costs = $55,000

Required to calculate the following:

i) Break Even point in units

ii) Sales Volume necessary to produce a net income of $25,000

iii) Total Units required to be sold to earn a Net Income of $42,500

Reference no: EM133001683

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