Answer:
a. Sales price per unit = $118
b. Break-even point in sales units = 8,139
Explanation:
a. Determine the unit sales price. Round answer to nearest whole number. $fill in the blank 1
Break-even point in sales units = Fixed costs / (Sales price per unit - Variable cost per unit) …………….. (1)
Substituting the relevant values from the question into equation (1) and solve for Sales price per unit, we have:
6,220 = $217,700 / (Seles price per unit - $83)
6,220 (Seles price per unit - $83) = $217,700
(6,220 * Sales price per unit) - (6,220 * $83) = $217,700
(6,220 * Sales price per unit) - $516,260 = $217,700
(6,220 * Sales price per unit) = $217,700 + $516,260
(6,220 * Sales price per unit) = 733,960
Sales price per unit = 733,960 / 6,220
Sales price per unit = $118
b. Determine the break-even point in sales units if the company desires a target profit of $67,165. Round answer to the nearest whole number. fill in the blank 2 units
Break-even point in sales units = (Fixed cost + Targeted profit) / Seles price per unit - Variable cost per unit) …………….. (2)
Substituting the relevant values into equation (2), we have:
Break-even point in sales units = ($217,700 + $67,165) / ($118 - $83) = $284,865 / $35 = 8,139
