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A) What is the relevance of Break- Even Analysis for an Organization? b) Banga Industries,...

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Finance

A) What is the relevance of Break- Even Analysis for an Organization?

b) Banga Industries, a producer of specialty cards, wants you to complete several calculations based on the information given:

Selling Price/Unit = $19.50

Variable Cost/Unit = $15.50

Total Fixed Costs = $55,000

Required to calculate the following:

  1. Break Even point in units
  2. Sales Volume necessary to produce a net income of $25,000
  3. Total Units required to be sold to earn a Net Income of $42,500

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