Elrod Inc. sells a product for $75 per unit. The variable cost is $45 per unit, while fixed costs are $48,000

Elrod Inc. sells a product for $75 per unit. The variable cost is $45 per unit, while fixed costs are $48,000. Determine (a) the break-even point in sales units and (b) the breakeven point if the selling price were increased to $95 per unit.

Answer:
a. 1,600 units = $48,000 ÷ ($75 – $45)
b. 960 units = $48,000 ÷ ($95 – $45)


Recovery Enterprises sells a product for $90 per unit. The variable cost is $60 per unit, while fixed costs are $45,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $110 per unit.

Answer:
a. 1,500 units = $45,000 ÷ ($90 – $60)
b. 900 units = $45,000 ÷ ($110 – $60)

Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000

Scrushy Company sells a product for $150 per unit. The variable cost is $110 per unit, and fixed costs are $200,000. 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 $50,000.

Answer:
a. 5,000 units = $200,000 ÷ ($150 – $110)
b. 6,250 units = ($200,000 + $50,000) ÷ ($150 – $110)


Calderon Inc. sells a product for $80 per unit. The variable cost is $55 per unit, and fixed costs are $25,000. Determine (a) the break-even point in sales units and (b) the breakeven point in sales units if the company desires a target profit of $20,000.

Answer:
a. 1,000 units = $25,000 ÷ ($80 – $55)
b. 1,800 units = ($25,000 + $20,000) ÷ ($80 – $55)