Business
Engineering
Math
Science
Social Science
Sara Pacheco is a sophomore in college and earns a little extra money by making beaded key ring accessories. She sells them on Saturday mornings at the local flea market. Sara charges $5 per unit and has unit variable costs (beads, wire rings, etc.) of $2. Her fixed costs consist of small pliers, a glue gun, etc., which cost her $90. Required: 1. Calculate Sara’s break-even units. 2. Prepare a profit-volume graph for Sara. 3. Prepare a cost-volume-profit graph for Sara.
Cornerstones of Cost Management (C...
Solutions
Cornerstones of Cost Management (C...
Sara Pacheco is a sophomore in college and earns a little extra money by making beaded key ring accessories. She sells them on Saturday mornings at the local flea market. Sara charges $5 per unit and has unit variable costs (beads, wire rings, etc.) of $2. Her fixed costs consist of small pliers, a glue gun, etc., which cost her $90.
Required:
- 1. Calculate Sara’s break-even units.
- 2. Prepare a profit-volume graph for Sara.
- 3. Prepare a cost-volume-profit graph for Sara.
1.
Ascertain the break-even units.
Explanation of Solution
Break-Even Point: The break-even point refers to the point of sales at which the firm neither earns a profit nor suffers a loss. It is also known as the point of sales or sales value at which the firm recovers the entire cost of fixed and variable nature.
Compute the break-even units:
2.
Represent the profit volume in a graph.
3.
Represent the cost volume profit in a graph.
Chapter 16 Solutions
Additional Business Textbook Solutions
Management, Loose-Leaf Version
Brief Principles of Macroeconomics (MindTap Course List)
Economics For Today
Essentials of Business Communication (MindTap Course List)
STATISTICS F/BUSINESS+ECONOMICS-TEXT
Survey of Accounting (Accounting I)
Contemporary Marketing
Financial & Managerial Accounting
Principles of Microeconomics (MindTap Course List)
Accounting (Text Only)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
Practical Management Science
Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
Foundations of Business (MindTap Course List)
MKTG 12:STUDENT ED.-TEXT
College Accounting (Book Only): A Career Approach
Accounting Information Systems
Macroeconomics
Purchasing and Supply Chain Management
Financial Accounting
Fundamentals of Financial Management (MindTap Course List)
College Accounting (Book Only): A Career Approach
PAYROLL ACCT.,2019 ED.(LL)-TEXT
Fundamentals of Financial Management (MindTap Course List)
Principles of Economics (MindTap Course List)
Financial Accounting
Accounting Information Systems
Economics (MindTap Course List)
Financial & Managerial Accounting
Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)
College Accounting, Chapters 1-27
Essentials of Economics (MindTap Course List)
Intermediate Accounting: Reporting And Analysis
Pkg Acc Infor Systems MS VISIO CD
Fundamentals of Financial Management, Concise Edition (MindTap Course List)
Exploring Economics
ECON: MICRO4 (New, Engaging Titles from 4LTR Press)
Statistics for Business & Economics, Revised (MindTap Course List)
Corporate Financial Accounting
Managerial Accounting: The Cornerstone of Business Decision-Making
Corporate Financial Accounting
Financial And Managerial Accounting
Managerial Accounting
Cornerstones of Financial Accounting
Micro Economics For Today
MACROECONOMICS FOR TODAY
Economics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
Understanding Management (MindTap Course List)
Microeconomics: Private and Public Choice (MindTap Course List)
