-Colin is the managerial accountant in charge of Company A, which sells water bottles. He previously determined that the fixed costs of Company A consist of property taxes, a lease, and executive salaries, which add up to $100,000. The variable cost associated with producing one water bottle is
$2 per unit. The water bottle is sold at a premium price of $12. To determine the break even point of Company A's premium water bottle.
-Woodturn Ltd. makes a television table that sells for $50 per unit. It has variable costs of $30 per unit and incurs fixed costs of $100,000 per period. Determine the break even point.
-The Sherston Brick Company manufactures a standard stone block for the building industry. The production capacity for the year is 100,000 standard blocks. The selling price per block is $1.60, variable costs are $0.60 per brick and fixed costs are $60,000 per year. Determine the break even
point)