EXERCISE- BREAK EVENT POINT

QUESTION 1.

A). BEP = 1.5

(48-18)

BEP = 1.5
30

BEP = 50,000 Units

B). 50,000 x 48

2,400,000

C). Add more production

QUESTION 2

A). Preferred "A"

B). 470,000 + 18Q = 560,000 + 10Q

18Q - 10Q = 560,000 - 470,000

8Q = 90,000

Q = 90,000

Q = 11,250 Unit

QUESTION 3 A B C

A). BEP = 1,450,000.00 BEP = 1,480,000.00 BEP = 1,460,000.00

(160 - 24) ( 160 - 22) ( 160 - 18 )
 BEP = 1,450,000.00 BEP = 1,480,000.00 BEP = 1,460,000.00
136 138 142

BEP = 10,666.00 BEP = 10,724.00 BEP = 10,281.00

B). Preferred is "C"