F=Fixed Cost

c=Variable cost

p=Selling Price

Q=Quantity/Break Even

9) F = $150,000

c = Material Cost + Labour Cost

= $25 + $45

= $70

P = $90

Q = F/(p-c)

= 150000/(90-70)

= 7500 units

Break Even (units) = 7500

11) F = $2052

c = $0.144

p = $0.36

Q = F/(p-c)

= 2052/(0.36-0.144)

= 9500 Miles

Break Even (miles) = 9500

12) A Chairs B Bar Stools

i) Sales Mix = 1:1

F = $20000

c = 1cA + 1cB

= $25 + $20 = $45

P = 1pA + 1pB

= $50 + $50 = $100

Break Even = 2F/(p-c) = 2*20000/(100-45)

= 2*363.6363 units = 727.2726

Since the mix ration is 1:1 the same number of units should be sold in both chairs and bar
stools to break even.
 Break Even (Chairs) = 363.6363 units

Break Even ($)(Chairs) = 363.6363*50 = $18181.82

Break Even (Bar Stools) = 363.6363 units

Break Even ($)(Bar Stools) = 363.6363*50 = $18181.82

(Ie) Break Even ($) = $36363.63

ii) Sales Mix = 1:4

F = $20000

c = (1/5)cA + (4/5)cB (Weighted Average)

= (1/5)(25) + (4/5)(20)

= $21

P = (1/5)pA + (4/5)pB

= (1/5)$50 + (4/5)($50)

= $50

Break Even = F/(p-c) = 20000/(50-21)

= 689.655 units

Break Even (Chair) = 689.655(1/5) = 137.931 units

Break Even ($) (Chair) = 137.931*50 = $6896.55

Break Even (bar stools) = 689.655(4/5) = 551.724 units

Break Even ($) (bar stools) = 551.724*50 = $27586.20

Total Break even ($) = $34482.75

13) F = $10000

c = Direct Labour Cost + Material Cost

= $3.50 + $4.50

= $8.00

P = $12.50

Break Even = F/(p-c)

= 10000/(12.50-8.00)

= 2222.22 units

Break Even ($) = 2222.22 * 12.50 = $27777.78

Revenue to break even = $27777.78