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Cost Behavior Analysis at Facebook Values: Fixed Costs: $500,000 Variable Costs per Unit: $20 Sales Price per Unit: $50 Requirements: Calculate the breakeven point in

Cost Behavior Analysis at Facebook

  • Values:
    • Fixed Costs: $500,000
    • Variable Costs per Unit: $20
    • Sales Price per Unit: $50
  • Requirements:
    1. Calculate the breakeven point in units and dollars.
    2. Determine the margin of safety in sales dollars.
    3. Analyze how a 10% increase in fixed costs would affect the breakeven point.
    4. Recommend pricing strategies to maximize profitability for Facebook.

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