Answer:
Break-even units = 66.67 units
Explanation:
<em>Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.</em>
<em>The break-even point is calculated as </em>
<em>Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit</em>
Contribution per unit = Selling Price - Variable cost
Contribution per unit = 15- (1+3+0.50) = 10.5
Fixed cost = 500 +( 50× 4) = 700
So the units requited to achieve break-even point:
Break-even point = 700/10.5
= 66.67 units
<h2>Reducing the "Entertainment " will hold good for the given scenario</h2>
Explanation:
There things which a man needs like food, water, shelter, etc.
Savings
: This aspect is necessary for helping us in crucial point. It can serve as an another hand on demand.
Groceries
: This is most important component of every men and women for living. So it cannot be reduced.
Utilities
: This is equally important.
Entertainment
: This shows luxurious aspect and not a mandatory one. So the amount spent in this category should be reduced.
Answer:
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Explanation:
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