Consider each of the following cases: Case Accounting Break-Even Unit Price Unit
ID: 2627932 • Letter: C
Question
Consider each of the following cases:
Case
Accounting
Break-Even
Unit Price
Unit Variable Cost
Fixed Costs
Depreciation
1
141,600
$ 41
$ 24
$ 727,000
?
2
133,000
?
64
2,700,000
$ 950,000
3
6,145
109
?
174,000
95,000
Required:
(a)
Find the depreciation for Case 1. (Do not round your intermediate calculations.)
(b)
Find the unit price for Case 2. (Do not round your intermediate calculations.)
(c)
Find the unit variable cost for Case 3
Case
Accounting
Break-Even
Unit Price
Unit Variable Cost
Fixed Costs
Depreciation
1
141,600
$ 41
$ 24
$ 727,000
?
2
133,000
?
64
2,700,000
$ 950,000
3
6,145
109
?
174,000
95,000
Explanation / Answer
1. Accounting Profit Break Even-Even Point= ( Fixed Cost + Depreciation)/(sale price - Variable Cost )
141600 =( 727000+depreciation)/(41-24)
Depreciation =$1,680,200
2.
133000 = (2700000+950000)/(unit price-64)
unit price = $91.44
3.
6145 = (174000+95000)/(109-variable cost)
variable cost = $65.22
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