Hi - I would like you to verify if I correctly done my BEP analysis. The following numbers were taken from my production budget - I will enclose my production budget followed by questions 1 and 2 - and my BEP answers Looking forward to your assistance and explanations

	SEP	OCT	NOV	DEC	JAN	FEB	MAR	APR	MAY	JUN	JUL	AUG	YEAR
FORECASTED UNIT SALES	80	80	80	80	80	80	90	90	90	90	90	90	0
ADD: PLANNED ENDING INVENTORY	0	0	0	0	0	0	0	0	0	0	0	0
TOTAL PRODUCTION REQUIRED	80	80	80	80	80	80	90	90	90	90	90	90
LESS: BEGINNING INVENTORY	0	0	0	0	0	0	0	0	0	0	0	0
UNITS TO BE MANUFACTURED	80	80	80	80	80	80	90	90	90	90	90	90	1,020
X Cost per unit	16.9	16.9	16.9	16.9	16.9	16.9	16.9	16.9	16.9	16.9	16.9	16.9
TOTAL PRODUCTION COST/MONTH	1352	1352	1352	1352	1352	1352	1521	1521	1521	1521	1521	1521	17238

QUESTIONS 1 AND 2

1) Calculate the break-even point in units and in dollars

2) What if the material cost of the sweater was actually $19.50 due to the increase in transportation costs and the sales for the month of August were not collected in August but in September?

My ANSWERS AND CALCULATIONS

1)

BREAK EVEN ANALYSIS in "Units and Dollars"

Cost per unit = $16.90

Selling Price = $120

Total Variable Cost = $16.90 x $120 = $2028

Total Production Cost = $17238

Fixed Cost = $17238 -2028 = $15210

FORMULA

Selling price ( Units - Varible costs) = Total Fixed Cost

Taking units as common

Units = ( Selling Price - Variable Costs) = Total Fixed Cost

Units = Total Fixed Costs/Selling Price - Variable Cost)

Contribution = Selling Price - Variable Cost

$120 - $16.90 = $103.1

BREAK EVEN = $15210 Fixed Cost / 103.1

BREAK-EVEN in Units = 147.53 = 148 Units

BREAK -EVEN SALES = BREAK EVEN UNIT x SELLING PRICE PER UNIT

BREAK-EVEN SALES = 148 Units x 120 = $17,760 in Dollars

2)	BREAK EVEN ANALYSIS IN " Units and Dollars"
	Cost per unit = $19.50
	Selling Price = $120
	Total Variable Cost = $19.50 x $120 = $2340
	Total Production Cost = $17238
	Fixed Cost = $17238 -2340 = $14898
	FORMULA
	Selling price ( Units - Varible costs) = Total Fixed Cost
	Taking units as common
	Units = ( Selling Price - Variable Costs) = Total Fixed Cost
	Units = Total Fixed Costs/Selling Price - Variable Cost)
	Contribution = Selling Price - Variable Cost
	$120 - $19.50 = $100.50
	BREAK EVEN = $14898 Fixed Cost / 100.5
	BREAK-EVEN in Units = 148.23 = 149 in Units
	BREAK -EVEN SALES = BREAK EVEN UNIT x SELLING PRICE PER UNIT
	BREAK-EVEN SALES = 149 Units x 120 = $17,880 in Dollars