Explore BrainMass
Share

# BEP and Variable Cost

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Please show your steps so I know where I am making my mistakes. See attached file.

#### Solution Preview

See tea attached file.

1. Sporto Enterprises is considering the manufacture of a new type of golf ball. Each golf ball would sell for \$3.75 and would require \$1.75 in variable costs. In addition, annual fixed costs associated with the project would total \$64,000.
Calculate: (a) the breakeven point in units
Selling price (S) \$ 3.75
Variable cost (V) \$ 1.75
Fixed cost (FC) \$ 64,000
BEP = FC/(S-V) 32,000 units

(b) the breakeven point in dollars,
Selling price (S) \$ 3.75
Variable cost (V) \$ 1.75
Fixed cost (FC) \$ 64,000
BEP = FC/(1-V/S) \$ 120,000

(c) the operating income or loss at a sales volume of \$112,500
Profit = Sales Volume*(1-V/S) - FC \$ -4,000 (negative sign indicates loss)
Since sales volume is less ...

#### Solution Summary

The solution solves three problems on break even analysis and variable cost.

\$2.19
The text passage contains a series of questions and answers related to break-even analysis and variable costs for a golf ball manufacturing project.
multiple_questions_with_answers
Given a text passage, determine:
    1. If it contains a mathematical question (including word problems or calculations)
    2. If an answer to that mathematical question is provided in the text

First, describe the content structure you found in 1-2 sentences.

Then provide your analysis in the following format:
TYPE: <one of the following values>
- NO_QUESTION
- SINGLE_QUESTION
- SINGLE_QUESTION_WITH_ANSWER
- MULTIPLE_QUESTIONS
- MULTIPLE_QUESTIONS_WITH_ANSWERS
system
Explore BrainMass
Share

# BEP and Variable Cost

This content was STOLEN from BrainMass.com - View the original, and get the solution, here!

Please show your steps so I know where I am making my mistakes. See attached file.

#### Solution Preview

See tea attached file.

1. Sporto Enterprises is considering the manufacture of a new type of golf ball. Each golf ball would sell for \$3.75 and would require \$1.75 in variable costs. In addition, annual fixed costs associated with the project would total \$64,000.
Calculate: (a) the breakeven point in units
Selling price (S) \$ 3.75
Variable cost (V) \$ 1.75
Fixed cost (FC) \$ 64,000
BEP = FC/(S-V) 32,000 units

(b) the breakeven point in dollars,
Selling price (S) \$ 3.75
Variable cost (V) \$ 1.75
Fixed cost (FC) \$ 64,000
BEP = FC/(1-V/S) \$ 120,000

(c) the operating income or loss at a sales volume of \$112,500
Profit = Sales Volume*(1-V/S) - FC \$ -4,000 (negative sign indicates loss)
Since sales volume is less ...

#### Solution Summary

The solution solves three problems on break even analysis and variable cost.

\$2.19
user
The text passage contains a series of questions and answers related to break-even analysis and variable costs for a golf ball manufacturing project.

TYPE: MULTIPLE_QUESTIONS_WITH_ANSWERS