|
Variable expense |
Fixed expense |
| Manufacturing overhead |
100000*.85=85000 |
100000-85000= 15000 |
| Operating expense |
80000*.20=16000 |
80000-16000= 64000 |
|
|
|
| Total |
101000 |
79000 |
1)Total fixed cost = 79000
2)Total variable cost = 101000
3)variable manufacturing overhead and operating cost per unit =
101000/200000= $ .505 per unit
total variable cost=6 direct material+ 1.5 labor + .505 =
8.005
contribution per unit = price -variable cost
= 10-8.005
= 1.995
4)units to breakeven = fixed cost / contribution per unit
= 79000/1.995
= 39599
units
5)decrease of total sales dollars that they endure before they
incur a net loss = selling price [expected sales - breakeven
sales]
= 10 [200000-39599]
= $ 1604010 decrease before they incur
loss
