Self-Assessment HW7A (Break-even point, Operating
leverage)
Question 1
The Poseidon Swim Company produces swim trunks. The average selling price for one of their
swim trunks is $38.43. The variable cost per unit is $18.19, Poseidon Swim has average fixed
costs per year of $24,161.
What is the break-even point in units for Poseidon Swim?
Round the answer to the whole number.
Your Answer:
Question 1 options:
Answer
Hide Check my answer
The formula is:
Qb=F/(P-V), where
Q = the number of units sold
Qb = the break-even level of Q
P = unit sales price
F = total fixed costs anticipated over the planning period
V = the unit variable cost
Qb=F/(P-V) = $24,161 /($38.43 - $18.19) = 1194 swim trunks
Question 2
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 08:26:30 GMT -05:00
https://www.coursehero.com/file/14574306/HWK-7A-break-even-point-operating-leverage/
, The Poseidon Swim Company produces swim trunks. The average selling price for one of their
swim trunks is $33.03. The variable cost per unit is $21.95, Poseidon Swim has average fixed
costs per year of $50,058.
What is the break-even point in dollar sales?
Round the answer to two decimals.
Your Answer:
Question 2 options:
Answer
Hide Check my answer
Step 1: Calculate the break-even in units
Qb =F*/(P-V), where
Q = the number of units sold
Qb = the break-even level of Q
P = unit sales price
F = total fixed costs anticipated over the planning period
V = the unit variable cost
Qb* = F/(P-V) = $50,058 /($33.03 - $21.95) = 4517.87
Step 2:
Calculate break-even point in dollar sales
4517.87 * $33.03 = $149225.25
Question 3
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 08:26:30 GMT -05:00
https://www.coursehero.com/file/14574306/HWK-7A-break-even-point-operating-leverage/
leverage)
Question 1
The Poseidon Swim Company produces swim trunks. The average selling price for one of their
swim trunks is $38.43. The variable cost per unit is $18.19, Poseidon Swim has average fixed
costs per year of $24,161.
What is the break-even point in units for Poseidon Swim?
Round the answer to the whole number.
Your Answer:
Question 1 options:
Answer
Hide Check my answer
The formula is:
Qb=F/(P-V), where
Q = the number of units sold
Qb = the break-even level of Q
P = unit sales price
F = total fixed costs anticipated over the planning period
V = the unit variable cost
Qb=F/(P-V) = $24,161 /($38.43 - $18.19) = 1194 swim trunks
Question 2
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 08:26:30 GMT -05:00
https://www.coursehero.com/file/14574306/HWK-7A-break-even-point-operating-leverage/
, The Poseidon Swim Company produces swim trunks. The average selling price for one of their
swim trunks is $33.03. The variable cost per unit is $21.95, Poseidon Swim has average fixed
costs per year of $50,058.
What is the break-even point in dollar sales?
Round the answer to two decimals.
Your Answer:
Question 2 options:
Answer
Hide Check my answer
Step 1: Calculate the break-even in units
Qb =F*/(P-V), where
Q = the number of units sold
Qb = the break-even level of Q
P = unit sales price
F = total fixed costs anticipated over the planning period
V = the unit variable cost
Qb* = F/(P-V) = $50,058 /($33.03 - $21.95) = 4517.87
Step 2:
Calculate break-even point in dollar sales
4517.87 * $33.03 = $149225.25
Question 3
This study source was downloaded by 100000872281541 from CourseHero.com on 09-30-2023 08:26:30 GMT -05:00
https://www.coursehero.com/file/14574306/HWK-7A-break-even-point-operating-leverage/
