ASDF Corporate Income StatementCurrent YearUnits Sold100,000$37.84$3, 784,000$1,284,000Unit PriceSales RevenueVariable Expenses (Materials &Labor)Fixed Expenses (Marketing &Overhead)Earnings Before Interest & Taxes$350,000$2,150,000(ЕВIT)$198,000$1,952,000Paid InterestEarnings Before Taxes (EBT)$664,000ТахesNet Income after Taxes (NIAT)$1,288,000$258,000DividendsRetained Earnings$1,030,000 11. Calculate the number of units ASDF must sale to break even. That is calculate BECa Unit Sales.Where:FC Total fixed costsPu-Price per unitVGu Variable cost per unitTotal Fixed CostsFC(Pu-VCu)BE Unit Sales* =Contribution MarginThis is the point where: Total Costs (TC)= Total Revenue (TR)BE Unit Sales(

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Asked Nov 5, 2019
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ASDF Corporate Income Statement
Current Year
Units Sold
100,000
$37.84
$3, 784,000
$1,284,000
Unit Price
Sales Revenue
Variable Expenses (Materials &
Labor)
Fixed Expenses (Marketing &
Overhead)
Earnings Before Interest & Taxes
$350,000
$2,150,000
(ЕВIT)
$198,000
$1,952,000
Paid Interest
Earnings Before Taxes (EBT)
$664,000
Тахes
Net Income after Taxes (NIAT)
$1,288,000
$258,000
Dividends
Retained Earnings
$1,030,000
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ASDF Corporate Income Statement Current Year Units Sold 100,000 $37.84 $3, 784,000 $1,284,000 Unit Price Sales Revenue Variable Expenses (Materials & Labor) Fixed Expenses (Marketing & Overhead) Earnings Before Interest & Taxes $350,000 $2,150,000 (ЕВIT) $198,000 $1,952,000 Paid Interest Earnings Before Taxes (EBT) $664,000 Тахes Net Income after Taxes (NIAT) $1,288,000 $258,000 Dividends Retained Earnings $1,030,000

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11. Calculate the number of units ASDF must sale to break even. That is calculate BECa Unit Sales.
Where:
FC Total fixed costs
Pu-Price per unit
VGu Variable cost per unit
Total Fixed Costs
FC
(Pu-VCu)
BE Unit Sales* =
Contribution Margin
This is the point where: Total Costs (TC)= Total Revenue (TR)
BE Unit Sales
(
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11. Calculate the number of units ASDF must sale to break even. That is calculate BECa Unit Sales. Where: FC Total fixed costs Pu-Price per unit VGu Variable cost per unit Total Fixed Costs FC (Pu-VCu) BE Unit Sales* = Contribution Margin This is the point where: Total Costs (TC)= Total Revenue (TR) BE Unit Sales (

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Expert Answer

Step 1

Break even unit sales can be described as the level of sale which generate enough revenue to cover variable cost and fixed cost.

Step 2

The variable cost per unit is calculated below:

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Total variable cost Variable cost per unit = Number of units sold $1,284,000 100,000 = $12.84

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Step 3

The formula to calculate break even u...

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Total fixed costs Break even unit sales =; Price per unit Variable cost per unit

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