Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes. The following information relates to one of their popular products, the orange flavor: Selling price per unit R20.00 Variable cost per unit R6.50 Fixed cost per unit* R10.00 Annual sales in units 99 000 *Fixed cost was allocated based on an expected annual production of 100 000 units.
Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes. The following information relates to one of their popular products, the orange flavor: Selling price per unit R20.00 Variable cost per unit R6.50 Fixed cost per unit* R10.00 Annual sales in units 99 000 *Fixed cost was allocated based on an expected annual production of 100 000 units.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter20: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 4CMA: Eagle Brand Inc. produces two products as follows: Eagle Brand has 1,000 lbs. of raw materials that...
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Xtra Energy is a company that produces energy drinks in a variety of flavors. The orange flavor is the most popular, especially amongst the trail running athletes.
The following information relates to one of their popular products, the orange flavor:
Selling price per unit |
R20.00 |
Variable cost per unit |
R6.50 |
Fixed cost per unit* |
R10.00 |
Annual sales in units |
99 000 |
*Fixed cost was allocated based on an expected annual production of 100 000 units.
REQUIRED:
Calculate the break-even point in units.
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