question archive The data of MRDC School Supplies Store
The data of MRDC School Supplies Store
Subject:AccountingPrice:2.86 Bought3
The data of MRDC School Supplies Store. The fixed cost 75,000 per month. Determine the break-even point in units for each item
Given the data:
Item Price Cost Monthly Forecasted Sales in Units
- Pad Paper 25.00 15.00 2400.00
- Ball pen 15.00 7.00 1200.00
- Pencil 12.00 5.00 1800.00
Questions:
6.What is the break-even point of the pad paper?
7.What is the break-even point of the ball pen?
8What is the break-even point of the pencil?
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1. Pad Paper
75,000/(25-15) = 7,500
2. Ball pen
75,000/(15-7) = 9,375
3. Pencil
75,000/(12-5) = 10,714.28
Step-by-step explanation
Break-even points = fixed cost / (sales price-variable cost)
