9 Break-Even Analysis In-Class Exercise (Form groups and work exercise): Exercise No PageE Break-even Analysis
10 Break-Even Analysis Break-Even Analysis Exercise E20-25: Trendy Toes Co. produces sports socks that sell for $1.90 per package with a total variable cost of $0.95 per unit. The company’s annual fixed costs are $95,000. Requirements:(a) Compute the contribution margin per package (b) Compute the contribution ratio per package (c) Compute the break-even point in units (d) Compute the break-even point in dollars of sales
18 Composite Units Composite Units Exercise E20-32: Speedy’s Scooters plans acquire and sell two type of scooters (standard and chrome). Speedy expects to sell one standard scooter for every three chrome scooters (ratio of 1:3). The following additional information is provided.Standard Chrome Selling price………………. $ $ 70 Variable cost……………… $ $ 40 Monthly fixed costs are $23, Requirements: (1) How many of each type of scooter must Speedy’s Scooters sell each month to break even? (2) How many of each type of scooter must Speedy’s Scooters sell each month to earn $25,300?