Use equation method to determine the break even point

Reference no: EM1354171

Blackmon Manufacturing Company makes a product that it sells for $50 per unit. The company incurs variable manufacturing costs of $14 per unit. Variable selling expenses are $6 per unit, annual fixed manufacturing costs are $189,000, and fixed selling and administrative costs are $141,000 per year.

Determine the break even point in units and dollars using each of the following approaches.

A. Equation Method
B. Contribution margin per unit
C. Contribution margin ratio
D. Confirm your results by preparing a contribution margin income statement for the break-even sales volume.

Reference no: EM1354171

Questions Cloud

Illustrate how could they will help to improve the gdp : Identify at least three such factors that, in your view, should be included in the GDP calculations; then elucidate and illustrate how could they will help to improve the GDP as a tool for measuring the well-being of a nation.

Conformity-cooperation and group relationships : Describe a specific scenario in which individuals across cultures may display the following: Conformity, cooperation, and group relationships.

Audit of family first farm : Each year since 2007, the accounting firm of Goode and Thuro was contracted to prepare audited financial statements for Family First Farm. Each year until the current audit, the CPAs did not find any discrepancies.

Explain why might this have been an effective weapon : they each printed the other's currency, with the intention of dropping large quantities by airplane. explain why might this have been an effective weapon.

Use equation method to determine the break even point : Blackmon Manufacturing Corporation makes a product that it sells for $50 per unit. The Corporation incurs variable manufacturing costs of $14 each unit. Variable selling expenses are $6 each unit,

Communication and trustbuilding among employees : Competitive advantage, promote innovation and risk taking, provide a platform to shared learning, maintain balance between the human and financial side of the company's agenda, and develop open communication and trustbuilding among employees and l..

Evaluate how organizational functions influence : Explain the organizational structure of your selected organization and compare and contrast that structure with two different organizational structures of similar organizations.

Issues into account for collecting user data via forms : In addition to making our forms easy to use we need to consider user privacy and the use of data. What are some of the issues which you believe you require to take into account for collecting user data via forms?

What describe the price at which trade takes place : Do opportunity cost play a role in people's decision to specialize in certain activities. What describe the price at which trade takes place.

User Account

All Pages