Break-even with Opportunity Costs 25% Cost...
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Accounting
| Break-even with Opportunity Costs | 25% | |||
| Cost Behavior | 25% | |||
| Multiple Product Break-even | 25% | |||
| NPV (extra credit) | 15% | |||
| Sunk Costs | 25% | |||
| 115% |
| Sevall Surfware is a company that specializes in selling towels, swimsuits, and beach accessories. | |||||||||||
| The sales mix is 5:5:10 (i.e. for every 5 towels sold, 5 swimsuits and 10 beach accessories are sold). | |||||||||||
| Find the break-even point for each product. The company's annual fixed costs are $68,000. | |||||||||||
| Additionally, Sevall wants to achieve an operating profit of $102,000. How many units would it need to sell to achieve a profit of $102,000? | |||||||||||
| Selling Price Per Unit | Variable Cost Per Unit | ||||||||||
| Towels | 10 | 3 | |||||||||
| Swimsuits | 25 | 10 | |||||||||
| Beach Accessories | 15 | 9 | |||||||||
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