CVP examples

Question 1

Lombardi co. ahs a unit selling price of $400, Variable cost per unit of $240 and fixed costs of $160,000. Calculate the breakeven point in units using a) mathematical equation and b) CM per unit

Answer 1

A) 400x = 240x + 160,000 = 1,000 (160,000 / 160)

B) CM per unit is = $160 (400 - 240)