Respuesta :
Answer:
$75,000
Explanation:
The computation of the revised break-even point in dollars is shown below:
Break even point = (Fixed expenses) ÷ (Profit volume Ratio)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $10 - $4
= $6
And, Profit volume ratio = (Contribution margin per unit) ÷ (selling price per unit) × 100
So, the Profit volume ratio = ($6) ÷ (10) × 100 = 60%
And, the fixed expenses is $30,000 + $15,000 = $45,000
Now put these values to the above formula
So, the value would equal to
= ($45,000) ÷ (60%)
= $75,000
The revised break-even point of the company is $75,000.
What is the break-even point?
The break-even point refers to a point at which the cost of production and the revenue are same. At that point, there is neither profit nor loss to the company.
The formula to calculate break-even point is:
[tex]\rm Break-even \:point =\dfrac{Fixed\:cost}{Contribution\:margin \:\%}[/tex]
The contribution margin % can b calculated as:
[tex]\rm Contribution \:margin \% = \dfrac{Contribution}{Selling\:price}\times 100[/tex]
Contribution can be calculate as:
[tex]\rm Contribution = Selling\:price - Variable\:cost[/tex]
Given:
Selling price is $10
Revised fixed cost is:
[tex]\$30,000 +\$15,000 = \$45,000[/tex]
Revised variable cost is $4
Therefore contribution will be:
[tex]\rm Contribution = Selling\:price - Variable\:cost\\\\\rm Contribution = \$10=\$4\\\\\rm Contribution = \$6[/tex]
The contribution margin % will be:
[tex]\rm Contribution \:margin \% = \dfrac{Contribution}{Selling\:price}\times 100\\\\\rm Contribution \:margin \% = \dfrac{\$6}{\$10}\times 100\\\\\rm Contribution \:margin \% = 60\%[/tex]
Therefore the break-even point will be:
[tex]\rm Break-even \:point =\dfrac{Fixed\:cost}{Contribution\:margin \:\%}\\\\\rm Break-even \:point =\dfrac{\$45,000}{60\%}\\\\\rm Break-even \:point =\$75,000[/tex]
Hence the break-even point is $75,000.
Learn more about break-even point here:
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