Lesson 15-2 Determining Breakeven

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Presentation transcript:

Lesson 15-2 Determining Breakeven 5/23/2019 LESSON 15-2 Determining Breakeven RED

CALCULATING THE BREAKEVEN POINT Lesson 15-2 5/23/2019 CALCULATING THE BREAKEVEN POINT page 451 Net Sales Contribution Margin Contribution Margin Rate ÷ = $27,000.00 ÷ = .15 or 15% $180,000.00 Contribution Margin Rate Total Fixed Costs Sales Dollar Breakeven Point ÷ = $21,000.00 ÷ = $140,000.00 .15 or 15% Unit Sales Price Sales Dollar Breakeven Point Unit Sales Breakeven Point ÷ = $140,000.00 ÷ = 28,000 units $5.00 LESSON 15-2 RED

CALCULATING BREAKEVEN POINT FOR NEW PRODUCTS Lesson 15-2 5/23/2019 CALCULATING BREAKEVEN POINT FOR NEW PRODUCTS page 452 Variable Cost per Unit Unit Sales Price Contribution Margin per Unit – = $18.00 – = $6.00 $12.00 Contribution Margin per Unit Total Fixed Costs Unit Sales Breakeven Point ÷ = $9,000.00 ÷ = 1,500 units $6.00 Unit Sales Price Unit Sales Breakeven Point Sales Dollar Breakeven Point × = 1,500 × = $27,000.00 $18.00 LESSON 15-2 RED

BREAKEVEN INCOME STATEMENT page 453 LESSON 15-2

TERM REVIEW page 426 breakeven point LESSON 15-2