Cost Accounting Break Even Point

Question 1

A company makes a product with a selling price of $20 per unit and variable costs of $12 per unit. The fixed costs for

the period are $40,000. What is the required output level to make a target profit of $10,000?

Question 2

House Depot Ltd. makes a television table that sells for $50 per unit. It has variable costs of $30 per unit and incurs

fixed costs of $100,000 per period. Construct the break-even chart for this operation and determine the sales value

that the firm will have to reach if it is to make $20,000 profit per period.