Question: Determining the break-even point and preparing a break-even graph Whitaker Company is considering the production of a new product. The expected variable cost is $48.75

Determining the break-even point and preparing a break-even graph Whitaker Company is considering the production of a new product. The expected variable cost is $48.75 per unit. Annual fixed costs are expected to be $650,000. The anticipated sales price is $65 each.

Required

Determine the break-even point in units and dollars using each of the following:

a. Equation method.

b. Contribution margin per unit approach.

c. Contribution margin ratio approach.

d. Prepare a break-even graph to illustrate the cost-volume-profit relationships.

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