Accounting 26th Edition by Carl Warren,James Reeve,Jonathan Duchac

Exercise 61

Break-even point
Santana sells a product for $115 per unit. The variable cost is $75 per unit, white fised costs are $65,000, Determine (a) the break-even point in sales units and (b) the break, even point if the selling price were increased to $125 per unit.
Break-even point
Elrod Inc. sells a product for $75 per unit. The variable cost is $45 per unit, while fixed costs are $48,000. Determine (a) the break-even point in sales units and (b) the breakeven point if the selling price were increased to $95 per unit.