Letter A & B

Per Unit
Sales 500 Fixed Costs 4,100
Divided by:
Variable Costs 200 Contribution Margin 300
Break-even
Contribution Margin 300 Point in units 13.666667
Fixed Costs or 14
Net Income

(It's not a whole number, so

this will depend upon the
instructor's decision if both are
considered or not)

Letter C
Per Unit Fixed Costs 4,100
Divided by:
Sales 600 Contribution Margin 400
Break-even
Variable Costs 200 Point in units 10.25
Contribution Margin 400
Fixed Costs
Net Income

Letter D

Per Unit Fixed Costs 4,100

Divided by:
Sales 450 Contribution Margin 250
Break-even
Variable Costs 200 Point in units 16.4
Contribution Margin 250
Fixed Costs
Net Income
AT BREAK-EVEN POINT (using 13.666667) AT BREAK-EVEN POINT (using 14)
Sales 6833 Sales 7000

Variable Costs 2733 Variable Costs 2800

Contribution Margin 4100 Contribution Margin 4200

Fixed Costs 4100 Fixed Costs 4100
Net Income, or BEP 0 Net Income 100

AT BREAK-EVEN POINT

Sales 6150

Variable Costs 2050

Contribution Margin 4100
Fixed Costs 4100
Net Income 0

AT BREAK-EVEN POINT

Sales 7380

Variable Costs 3280

Contribution Margin 4100
Fixed Costs 4100
Net Income 0