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Determine the break-even point in units

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Reference no: EM132113049

Question 1 - High-Low Cost Estimation and Profit Planning

Comparative 2012 and 2013 income statements for Dakota Products Inc. follow:

Unit sales

6,000

9,000

Sales revenue

$78,000

$117,000

Expenses

(70,000)

(85,000)

Profit (loss)

$8,000

$32,000

(a) Determine the break-even point in units.

(b) Determine the unit sales volume required to earn a profit of $12,000.

Question 2 - Multiple Product Break-Even Analysis

Presented is information for Stafford Company's three products.

With monthly fixed costs of $306,000, the company sells two units of A for each unit of B and three units of B for each unit of C.

Unit selling price

$7

$9

$7

Unit variable costs

(4)

(5)

(1)

Unit contribution margin

$3

$4

$6

Determine the unit sales of product A at the monthly break-even point.

Reference no: EM132113049

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