03 Jul Calculating Fixed Costs, Variable Costs, And Breakeven
- Find the breakeven Price if:
- Volume = 1000
- Variable Cost per Unit = $5
- Total Fixed Cost = $2500
- Find the breakeven Volume if:
- Price = $25
- (Variable Cost per Unit x Volume) = $300
- Total Fixed Cost = $5000
- Find the breakeven Total Fixed Cost if:
- Price = $30
- Variable Cost per Unit = $10
- Volume = 10,000
- Find the breakeven Variable Cost per Unit if:
- Price = $50
- Fixed Cost = $25,000
- Volume = 15,000
- To help you better understand fixed and variable costs, briefly describe what happens to each of the following as volume increases: (Provide a generalization based on the concept rather than a specific number.)
- Total Fixed Cost?
- Total Variable Cost?
- Fixed Costs per Unit?
- Variable Cost per Unit?
Break-Even Volume = Fixed Costs / Contribution Margin per Unit
- What is the Contribution Margin per Unit if:
- Fixed Costs = $2500
- Revenue per visit = $150
- Variable Cost per visit = $75
- What is the Break-Even Volume from the data above? Should the company provide the services if no other costs are added? Why or why not?
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