Ray Bond, from

Problem 1-16, is
trying to find a
new supplier that
will reduce his
variable cost of
production to $15
per unit. If he was
able to succeed in
reducing this cost,
what would the
break-even point
be?

Breakeven Analysis Cost-volume analysis

Enter the fixed and variale costs and the selling
price in the data area. You may enter a volume 500
at which to perform a volume analysis.
450
400
350
300
250
$

200
150
100
50
0
0 1 2 3 4 5 6 7 8 9
Units

Costs Revenue
Cost vs.
Revenue

Data
  Option 1
Fixed cost 150
Variable cost 15
Revenue 50
Volume(optional)  

Results
Breakeven points    
Units 4.285714286  
$
Dollars 214.29  
     
Volume Analysis @ 0 units
$
Costs 150.00  
$
Revenue -  
$
Profit (150.00)  
So the break even
point is 4.2857
Graph
X-axis Min and max Costs Revenue
0 150 0
428.571
8.571428571 278.5714286 4