on sells products for $43 each that have variab ual fixed cost is $638,000. ontribution margin approach to determine the b units

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 3BE
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Fanning Corporation sells products for $43 each that have variable costs of $14 per
unit. Fanning's annual fixed cost is $638,00.
Required
Use the per-unit contribution margin approach to determine the break-even point in
units and dollars.
Break-even point in units
Break-even point in dollars
Transcribed Image Text:Fanning Corporation sells products for $43 each that have variable costs of $14 per unit. Fanning's annual fixed cost is $638,00. Required Use the per-unit contribution margin approach to determine the break-even point in units and dollars. Break-even point in units Break-even point in dollars
Expert Solution
Step 1

Breakeven point is where the fixed cost equals the contribution margin . At breakeven point there is no profit no loss

 

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