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PROBLEM 12-4 BREAKEVEN POINT AND OPERATING LEVERAGE DATA Avg selling price 85 Variable cost 44 Fixed costs 150,000 A) Breakeven point = B) Dollar sales
| PROBLEM 12-4 | ||||
| BREAKEVEN POINT AND OPERATING LEVERAGE | ||||
| DATA | ||||
| Avg selling price | 85 | |||
| Variable cost | 44 | |||
| Fixed costs | 150,000 | |||
| A) | ||||
| Breakeven point = | ||||
| B) | ||||
| Dollar sales volume = | ||||
| C) | ||||
| Units: | ||||
| Firm's profit or loss | 7,000 | 9,000 | 15,000 | |
| Sales | 595,000 | 765,000 | 1,275,000 | |
| Variable costs | 308,000 | 396,000 | 660,000 | |
| Revenue before FC | 287,000 | 369,000 | 615,000 | |
| Fixed costs | 150,000 | 150,000 | 150,000 | |
| EBIT | 0 |
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