High-Low Method

The manufacturing costs of Carrefour Enterprises for the first three months of the year follow:

	Total Costs		Units Produced
June	$300,000		2,700 units
July	440,000		5,500
August	325,000		3,500

Using the high-low method, determine (a) the variable cost per unit and (b) the total fixed cost.

a. Variable cost per unit

$

b. Total fixed cost

$ Target Profit Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, andfixed costs are $200,000. Determine (a) the break-even point in sales units and (b) the break-even point in sales units if the company desires a target profit of $50,000. a. Break-even point in sales units units b. Break-even point in sales units if the company desire Sales Mix and Break-Even Analysis Wide Open Industries Inc. has fixed costs of $475,000. The unit selling price, variable costper unit, and contribution margin per unit for the companys two products follow: Product Selling Price Variable Cost per Unit Contribution Margin per Unit AA $145 $105 $40 BB 110 75 35 The sales mix for products AA and BB is 60% and 40%, respectively. Determine the break-even point in units of AA and BB. Round your interim computations to nearest cent, if required. a. Product AA units s a target profit of $50,000 units

Sales Mix and Break-Even Analysis

Einhorn Company has fixed costs of $105,000. The unit selling price, variable costper unit, and contribution margin per unit for the companys two products follow:

Product Selling Price Variable Cost per Unit Contribution Margin per Unit QQ $50 $35 $15 ZZ 60 30 30

The sales mix for products QQ and ZZ is 40% and 60%, respectively. Determine the break-even point in units of QQ and ZZ.

a. Product QQ units b. Product ZZ units