Chapter 5 Applying Excel ewconnect.mheducation.com/flow/connect.html Savod plyin

Question

Chapter 5 Applying Excel ewconnect.mheducation.com/flow/connect.html Savod plying Excel 6 text 2. Change all of the numbers in the data area of your worksheet so that it looks like this: 1 Chapter 5: Applying Excel 3 Data 4 Unit sales 5 Selling price per unit 6 Variable expenses per unit 7 Fixed expenses 10,000 units S70 per unit 28 per unit S 378000 If your formulas are correct, you should get the correct answers to the following questions (a) What is the break-even in dollar sales? es Prey . 2 of 2 Next arch

Explanation / Answer

Answer

Breakeven Point (In Units) = Fixed Cost / Contribution Margin per unit

= Fixed Cost / (Sales – Variable Cost) per unit

= $378,000 / ($70 – 28)

Breakeven Point (In Units) = 9,000 Units

Breakeven Point (In Sales) = Breakeven Point (In Units) * Sales price per unit

= 9,000 Units * $70 per unit

Breakeven Point (In Sales) = $630,000

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