##### Reference no: EM131413486

Module 09 Questions/Problems - Calculating Fixed Costs, Variable Costs, and Breakeven

Write your answers in the space provided for each of the questions below:

**Price x Volume = Fixed Cost + (Variable Cost per Unit x Volume)**

1. Find the breakeven price if:

• Volume = 1000

• Variable Cost per Unit=$5

• Total Fixed Cost=$2500

2. Find the breakeven volume if:

• Price = $25

• (Variable Cost per Unit x volume)=$300

• Total Fixed Cost =$5000

3. Find the breakeven total fixed cost if:

• Price = $30

• Variable Cost per Unit=$10

• Volume =10,000

4. Find the breakeven Variable Cost per Unit if:

• Price = $50

• Fixed Cost=$25,000

• Volume =15,000

5. To help you better understand fixed and variable costs, briefly describe what happens to each of the following as volume increases: (Provide a generalization based on the concept rather than a specific number.)

A. Total Fixed Cost?

B. Total Variable Cost?

C. Fixed Costs per Unit?

D. Variable Cost per Unit?

**Break-Even Volume=Fixed Costs / Contribution Margin per Unit**

6. What is the Contribution Margin per Unit if:

• Fixed Costs = $2500

• Revenue per visit = $150

• Variable Cost per visit = $75

7. What is the Break-Even Volume from the data above? Should the company provide the services if no other costs are added? Why or why not?