### What is the break-even volume from the data above

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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?

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