Question
Q1.Tims Bicycle Shop sells high-speed bicycles. The shops annual fixed costs are $45,000. The unit sale price averages $150, and its variable cost for each
Q1.Tims Bicycle Shop sells high-speed bicycles. The shops annual fixed costs are $45,000. The unit sale price averages $150, and its variable cost for each bicycle is $100.
- How many bicycles must the shop sell to breakeven?
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- What is the breakeven point sales value in Dollars?
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- To earn a target profit of $15,000, what is the sales value in dollars that the shop required to achieve?
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- If fixed cost increased by 10%, compute the shops breakeven point in units.
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E.Explain why Break-even point analysis is important in planning for decision makers.
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Managerial Accounting
Authors: Cataldo Cpa II, Cma Cgma A J
2nd Edition
1634929241, 978-1634929240
