Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

How to i do i find the fixed cost or any number to to an equation similar to this when part of the equation information

How to i do i find the fixed cost or any number to to an equation similar to this when part of the equation information is left out

I know the break even equation is sales revenue - variable costs - fixed costs= break even point

Example

These data are for Patel Company.

Selling price per unit $5.00

Variable cost per unit $2.00

Number of units sold 50,000 units

Net income $40,000

Calculate the break-even point in number of units.

Possible answers

  • 39,286 units
  • 36,667 units
  • 28,000 units
  • 35,714 units

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt

IFRS global edition

1-119-41959-4, 470534796, 9780470534793, 9781119419594 , 978-1119419617

Students also viewed these Accounting questions

Question

=+b) Which model do you prefer? Explain briefly. Section 18.4

Answered: 1 week ago