Using the Break-Even Equations to Solve for Price and Variable Cost per Unit Solve the following independent problems. Required: 1. Andromeda Company’s break-even point is 2,400 units. Variable cost per unit is $42; total fixed costs are $67,200 per year. What price does Andromeda charge? 2. Immelt Company charges a price of $6.50; total fixed cost is $314,400 per year, and the break-even point is 131,000 units. What is the variable cost per unit?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section14.A: Breakeven Analysis
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Using the Break-Even Equations to Solve for Price and Variable Cost per Unit Solve the following independent problems.

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1. Andromeda Company’s break-even point is 2,400 units. Variable cost per unit is $42; total fixed costs are $67,200 per year. What price does Andromeda charge?

2. Immelt Company charges a price of $6.50; total fixed cost is $314,400 per year, and the break-even point is 131,000 units. What is the variable cost per unit?

 

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