Problem 11-7 Calculating Break-Even [LO3] In each of the following cases, calcul
ID: 2720825 • Letter: P
Question
Problem 11-7 Calculating Break-Even [LO3]
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
Explanation / Answer
Statement showing computations Particulars Case 1 Case 2 Case 3 Selling price per unit 3,220.00 121.00 26.00 Variable cost per unit 2,575.00 71.00 6.00 Contribution per unit = SP-VC 645.00 50.00 20.00 Fixed Costs excluding depreciation 9,100,000.00 85,000.00 3,200.00 Depreciation 3,600,000.00 300,000.00 980.00 Fixed Costs Including depreciation 12,700,000.00 385,000.00 4,180.00 Accounting BEP in Units=FC inc dep /Cont per unit 19,689.92 7,700.00 209.00 Cash Break even point in Units= FC Excl dep/Cont per unit 14,108.53 1,700.00 160.00 Accounting BEP in $ = UNIts *SP 63,401,550.39 931,700.00 5,434.00 Cash Break even point in $ = UNIts *SP 45,429,457.36 205,700.00 4,160.00 Note : We have assumed Fixed Costs does not inculde depreciation in absence of information