Question

Melka Inc. sells a product for $80 per unit. The variable cost is $70 per unit, and fixed costs are $25,000. Determine (a) The break-even point in sales units and (b) The break-even point in sales units if the company desires a target profit of $25,000.

Name: melka inc sells a product for 80 per unit the variable cost is 70 per unit and fixed costs are 25000 determine a the break even point in sales units and b the break even point in sales units 75707
Uploaded: 2022-04-19T11:55:41-08:00
Duration: 3 min 1 s
Channel: Aya Bianca Into
Description: melka inc sells a product for 80 per unit the variable cost is 70 per unit and fixed costs are 25000 determine a the break even point in sales units and b the break even point in sales units 75707

          Melka Inc. sells a product for $80 per unit. The variable cost is $70 per unit, and fixed costs are $25,000. Determine (a) The break-even point in sales units and (b) The break-even point in sales units if the company desires a target profit of $25,000.

Added by Maxwell K.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Aya Bianca Into

04/19/2022

Step 1

This means that the company neither makes a profit nor incurs a loss. The formula to calculate the break-even point in units is: Break-even point in units = Fixed Costs / (Selling Price per unit - Variable Cost per unit) Substituting the given values into the Show more…

Show all steps

Thanks for your feedback!

Melka Inc. sells a product for $80 per unit. The variable cost is $70 per unit, and fixed costs are $25,000. Determine (a) The break-even point in sales units and (b) The break-even point in sales units if the company desires a target profit of $25,000.