To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin

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2 years ago

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Vacation Property Rentals purchased 50 television sets for their rental units at a cost of $250 per television. The televisions

Alex787 [66]

Under A straight line basis which is a method of computing depreciation and amortization by dividing the difference between an asset's cost and its expected salvage value by the number of years it is expected to be used. Also known as straight line depreciation or straight line amortization, this is the simplest depreciation method. But instead of that find The rate of depreciation
100/5 years=20% depreciation rate per year
Total cost 250×50=12,500
Salvage value 40×50=2,000
Subtract the salvage value from the total cost of televisions
12,500−2,000=10,500
In the first year the depreciation is
10,500×0.2=2,100
Book value
12,500−2,100=10,400
In the second year the depreciation is
10,500×0.2=2,100
Book value
10,400−2,100=8,300
In the third year the depreciation is
10500×0.2=2100
Book value
8300-2100=6200

the book value for all of the televisions at the end of the third year is 6200

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3 years ago