S721 Given the following data calculate a BEP b BEP and c th

S7.21 Given the following data calculate a) BEP; b) BEP; and c) the profit at 100,000 unites

p=$10/unite V= $5/uites F=$60000

Solution

p=$10/unite V= $5/uites F=$60000

A) BEP in Sales Units

Break-even Sales Units = x =FC / (p v)

X = 60,000 / (10 - 5)

X = 12000 units

B) BEP in Sales Dollars

Break-even Sales Dollars = Price per Unit × Break-even Sales Units
BEP = $10 * 12000

BEP = $120000

c) the profit at 100,000 unites

100,000 (10-5) - 60,000

100,000(5) - 60,000 = $ 440,000 profit at 100,000 units