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Break-Even Occurs Between The Production Volume Interval of 20,000 To 30,000

The document provides parameters for Cox Electric including total fixed costs of $10,000, material and labor costs per unit of $0.15 and $0.10 respectively, revenue per unit of $0.65, and total variable costs of $0.25 per unit. It then analyzes break-even production volume and profit at different volumes based on these parameters. The exact break-even point is calculated to be 25,000 units.

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85 views6 pages

Break-Even Occurs Between The Production Volume Interval of 20,000 To 30,000

The document provides parameters for Cox Electric including total fixed costs of $10,000, material and labor costs per unit of $0.15 and $0.10 respectively, revenue per unit of $0.65, and total variable costs of $0.25 per unit. It then analyzes break-even production volume and profit at different volumes based on these parameters. The exact break-even point is calculated to be 25,000 units.

Uploaded by

krips
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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COX ELECTRIC

Parameters

Total Fixed Cost = $ 10,000.00


Material Cost per Unit = $ 0.15
Labor Cost per Unit = $ 0.10
Total Variable Cost = $ 0.25
Revenue per Unit = $ 0.65

a P(x) = R(x) - C(x)


P(x) = 0.65x - (10,000 + 0.25x) d Production Volume
0
b Fixed Costs $ 10,000.00 10,000.00
Variable Costs/Unit Produced 20,000.00
Raw Material $ 0.15 30,000.00
Labor $ 0.10 40,000.00
Total Variable Cost per Unit $ 0.25 50,000.00
60,000.00
Revenue per Unit 0.65 70,000.00
Volume x 80,000.00
Fixed Cost 10,000.00 90,000.00
Variable Cost =0.25x 100,000.00
Total Cost =10,000+0.25x
Revenue =0.65x Break-even occurs between the production volu

Net Profit =0.65x-(10,000+0.25) e Revenue per Unit


Volume
c Revenue per Unit $ 0.65
Volume $ 12,000.00
Fixed Cost 10,000.00 Total Cost
Variable Cost 3,000.00 Revenue
Total Cost 13,000.00
Revenue 7,800.00 Break-even Volume

Net Profit $ -5,200.00 Net Profit

The exact break-even point is 25,000.

f Volume
0
10,000.00
20,000.00
30,000.00
40,000.00
50,000.00
60,000.00
70,000.00
80,000.00
90,000.00
100,000.00
$ -5,200.00

ccurs between the production volume interval of 20,000 to 30,000.

$ 0.65
$ 25,000.00
Fixed Cost 10,000.00
Variable Cost 6,250.00
16,250.00
16,250.00

25,000.00

$ -

eak-even point is 25,000.


Break-Even Analy
Fixed Cost Variable Cost Total Cost Revenue Net Profit 70,000.00
10,000.00 0 10,000.00 0 - 10,000.00 60,000.00
10,000.00 2500 12,500.00 6,500.00 - 6,000.00
50,000.00
10,000.00 5000 15,000.00 13,000.00 - 2,000.00
10,000.00 7500 17,500.00 19,500.00 2,000.00 40,000.00

30,000.00

20,000.00

10,000.00
60,000.00

50,000.00

40,000.00

10,000.00 10000 20,000.00 26,000.00 6,000.00 30,000.00


10,000.00 12500 22,500.00 32,500.00 10,000.00 20,000.00
10,000.00 15000 25,000.00 39,000.00 14,000.00
10,000.00
10,000.00 17500 27,500.00 45,500.00 18,000.00
10,000.00 20000 30,000.00 52,000.00 22,000.00 -
0 20000 40000 60000
10,000.00 22500 32,500.00 58,500.00 26,000.00
10,000.00 25000 35,000.00 65,000.00 30,000.00 Total Cost Reve
Break-Even Analysis
20000 40000 60000 80000 100000 120000

Total Cost Revenue

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