Price is 24.

95

FC is 12350

VC 15.45

Q at breakeven?

Q= FC/P-VC

=12350/24.95-15.45

=12350/9.5 =1300 units

Q#2

Find EBIT
Price*Quantity= Sales
-Fixed cost
-VC Per unit * quantity= TVC
=EBIT
EBIT= Q*P- Fc-VC*Q
= Q(P-VC) -FC
Q#9
FC= 380,000
VC 16 PER UNIT
PRICE 63.50 PER UNIT
BREAKEVEN= FC/ P-VC= 380,000/63.5-16= 8000 UNITS
EBIT AT 9000 UNITS
EBIT=Q(P-VC)-FC
= 9000(63.5-16)-380,000
=47500

EBIT AT 10,000 UNITS

=95000

EBIT AT 11,000 UNITS

=142,500

%CHANGE IN EBIT= BASE LEVEL

OTHER VALUE- BASE LEVEL/ BASE LEVEL
(EBIT AT 11000- EBIT AT 10,000)/ EBIT AT 10,000
= 142500-95000/ 95000
=50% CHANGE
%CHANGE= (EBIT AT 9000- EBIT AT 10,000)/ EBIT AT 10,000
= -50%

SALES AT 11000= 698500

SALES AT 10,000*63.5= 635000
BASE LEVEL IS 10,000
%CHANGE IN SALES= SALES AT 11,000- SALES AT 10,000 / SALES AT 10,000
698500-63500/63500= 10%

DOL AT 11000= % CHANGE IN EBIT/ % CHANGE IN SALES

=50%/ 10% = 5% OR 15%

Question #1 Price 24.95

FC 12350

VC 15.45

Q at breakeven

Breakeven= FC/P-VC

12350/24.95-15.45

12350/9.5=1300 units sold then he will reach at breakeven point

Question #2

FC/P-VC

45000/18-6.75

=4000

Q=4000

Q=5000

Question #3

Price 129

FC 473,000

VC 86

Q=473000/129-86

=473000/43

=11000
Question #4

price 13.98

VC 10.48

FC 73500

Q= 21000

EBIT AT BREAKEVEN POINT= P*Q- FC- VC*Q

EBIT=13.98*21000- 73500- 10.48*21000

=0

Question #6 DATA

FC 40000

P 10

VC 8

B FC 44000

Question #9 C PERCENTAGE CHANGE= NEW –OLD/OLD

9000-10000/10000

-1000/10000

10% SALES DECREASE

11000-10000/10000

10 % SALES INCREASE

Q 11000

BASE 10,000

PRICE 63.5

VC 16

FC 380,000
SALES WITH 11000*63.5= 698500

SALES WITH 10,000*63.5= 635000

EBIT WITH 11000= P*Q –FC-VC*Q= 142500

EBIT WITH 10,000 UNITS= 95000

% CHANGE IN SALES 698500-635000/ 635000= 0.1= 10%

% CHANGE IN EBIT 142500-95000/ 95000= 0.5= 50%

DOL = %CHANGE IN EBIT/%CHANGE IN SALES= 50%/10%= 5

EBIT = 3000

INTREST EXPENSE 1000

CAR OBLIGATIONS TOTAL 1350