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  • Assignment Breakeven Analysis

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    Sock the Cat
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    TechGate needs to sell 1,440 CDs to breakeven based on a selling price of P1,040 per unit and variable cost of P624 per unit with total fixed costs of P2,080,000. Adel and Tony's organic delivery business needs to sell 1,000 boxes to breakeven with a box cost of P208 and selling price of P500 per box, and total fixed costs of P27,000. The breakeven point is calculated as total fixed costs divided by the difference between selling price and variable cost per unit.

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    ASSIGNMENT-BREAKEVEN-ANALYSIS

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    TechGate needs to sell 1,440 CDs to breakeven based on a selling price of P1,040 per unit and variable cost of P624 per unit with total fixed costs of P2,080,000. Adel and Tony's organic delivery business needs to sell 1,000 boxes to breakeven with a box cost of P208 and selling price of P500 per box, and total fixed costs of P27,000. The breakeven point is calculated as total fixed costs divided by the difference between selling price and variable cost per unit.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    37 views1 page

    Assignment Breakeven Analysis

    Uploaded by

    Sock the Cat
    TechGate needs to sell 1,440 CDs to breakeven based on a selling price of P1,040 per unit and variable cost of P624 per unit with total fixed costs of P2,080,000. Adel and Tony's organic delivery business needs to sell 1,000 boxes to breakeven with a box cost of P208 and selling price of P500 per box, and total fixed costs of P27,000. The breakeven point is calculated as total fixed costs divided by the difference between selling price and variable cost per unit.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    ASSIGNMENT:

    BREAKEVEN COMPUTATION

    Analyze the given problems and compute for what is being asked. (2 items x 5 points).
    1. TechGate makes PS4 game with a selling price of P1, 040 per CD with a variable
    cost of P624.00 per unit. The fixed cost for the period is P2, 080,000. How many
    CDs should TechGate sell to breakeven.

    2. Adel and Tony run a small on line business specializing in delivering organic fruit and
    vegetables to the local area. They buy from local farms and package these together
    in boxes. Each box costs P208.00 and is being sold at P500.00 per box. Other fixed
    costs incurred each year are as follows:

    Php
    Rents of delivery van 4,500
    Rent of premises 10,500
    Direct wages 10,000
    Advertising 2,000

    Calculate the breakeven point in boxes (unit).

    FORMULA: BREAKEVEN Analysis =FC/(P-VC)

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