Homework Third Period

Please develop the following exercises leaving evidence of the answer, answers without backup will not
be graded.

1. From the following data, you are required to calculate break-even point and net sales value at
this point(40%):

Direct material cost per unit $10

Direct labor cost per unit $5

Fixed overhead $50,000

Variable overhead at 60% on direct labor

Selling price per unit $25

Trade Discount 4%

2. From the following data,

Variable Cost per unit $15

Fixed Expenses $54,000

Selling Price per unit $20

calculate:

a. What is the break-even point? (15%)

b. What should be the selling price per unit, if the break-even point should be brought down to
6,000 units? (15%)
3. With the following data:

Cost $350

Margin Rate 22%

Calculate the price with:

a. Cost Markup Pricing Model (10%)

b. Margin Pricing Model (10%)
c. Rate-of-Return Pricing Model (10%)