Date June 27 2020 BREAK-EVEN POINT PROBLEM 1. Calculate Break Even Point per dollar Kate Spade, produce limited edition of hand bag. The managerial accountant is sure that this new hand bag are going to turn a profit and measure the number of units they will have to produce an in order to cover their expenses. Production Data: Total Fixed Cost $500,000 Variable Cost per unit $150 Sales price per unit $500 Desired Profit $250,000 Required: A. Calculate Break Even Point per unit Answer: 500,000/350 = 1428.571/unit B.Calculate Break Even Point per dollar Answer: 500,000/70-714285.71 c How many units to sell to achieve the desired profit Answer: 500,000 + 250,000= 750,000/70%=1,071,428.57