Question: Break even point in units = Fixed cost / Contribution Margin per unit Target Profit = (Fixed Cost + Target Profit) / Contribution Margin Per
Break even point in units = Fixed cost / Contribution Margin per unit Target Profit = (Fixed Cost + Target Profit) / Contribution Margin Per Unit
Break even point in dollars = Fixed cost / Contribution Margin % After tax target profit = (Fixed Cost) + (Target Profit) / (1 - Tax Rate) / Contribution Margin Per Unit
Break even on a cash basis = (Fixed cost - Non cash items) / Contribution margin per unit
Variable cost per unit $450
Selling price per unit $600
Total fixed costs $1800000
Tax Rate .50
Non cash expenses $300000
1)Solve the break-even point in units (show your work)
2)Solve the break-even volume in dollars (show your work)
3) Solve the target sales volume in units assuming a targeted net income before taxes of $225000 (show your work)
4) Solve the target sales volume in dollars assuming a targeted net income after taxes of $300000 (show your work)
5) Solve break even on a cash bases
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