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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