Guillermo Breakeven
Essay by people • August 11, 2011 • Study Guide • 395 Words (2 Pages) • 1,392 Views
Guillermo Furniture Break Even Point Based On Current Budget Team B ACC 561-June 13, 2010
Mid Grade High Grade Total
Sales $ 1,315,765 $ 454,443 $ 1,770,208
Variable cost
Direct Materials $ 361,900 $ 129,250 $ 491,150
Direct Labor $ 775,500 $ 232,650 $ 1,008,150
Benefits $ 77,550 $ 23,265 $ 100,815
Contribution Margin $ 100,815 $ 69,278 $ 170,093
Fixed cost
Salaried $ 50,000
Benefits $ 5,000
Utiliities $ 9,000
Insurance $ 3,000
Property tax $ 975
Depreciaton $ 50,000
Supplies $ 6,000
Total fixed cost $ 123,975
Net income before tax $ 46,118
Contribution Margin Ratio 0.076621 0.152446 0.096086
Beak even point = fixed cost / Contribution Margin Ratio
$123,975/0.096086
$ 1,290,250.40
Break Even Point of each Product In Dollars $ In Units
Mid grade $1,315,765/$1,770,208 *$1,290,250 = $ 959,020.52 1884
High end $454,443/$1,770,208*$1,29,0250 = $ 331,229.48 377
$ 1,290,250.00
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