Calculate the missing values. Express dollar values rounded to two decimal places and break-even volumes rounded up to the next integer.

一日价

Rubaldeep Kaur

Fixed Cost

(FC) per month

Variable

Cost (VC)

per unit

Selling

Price (S)

per unit

Break-even

Volume (x)

per month

Total Variable

Cost at Break-

even (TVC)

per month

Total

Revenue (TR)

per month at

Break-Even

$8,700.00

$26.00

$37.00




50.00

$0.00

$125,000.00

$500.00

$0.00

1,020

$0.00

$0.00

$720.00

$0.00

$74.00

22

$0.00

$0.00

$0.00

$31.00

$54.00

449

$0.00

$0.00


To solve this problem, we'll fill in the missing values for the break-even analysis. Here's a step-by-step breakdown:

### **Formulas Used:**

1. **Break-even Volume (x):**
   \[
   x = \frac{FC}{S - VC}
   \]
   Where:
   - $ FC $ is the Fixed Cost
   - $ S $ is the Selling Price per unit
   - $ VC $ is the Variable Cost per unit

2. **Total Variable Cost at Break-even (TVC):**
   \[
   TVC = x \times VC
   \]

3. **Total Revenue at Break-even (TR):**
   \[
   TR = x \times S
   \]

### **Calculations:**

#### **Row 1:**
- **Given:**
  - $ FC = 8700.00 $
  - $ VC = 26.00 $
  - $ S = 37.00 $
  
- **Break-even Volume (x):**
  \[
  x = \frac{8700.00}{37.00 - 26.00} = \frac{8700.00}{11.00} = 790.91
  \]
  Rounded up to the nearest integer: $ x = 791 $

- **Total Variable Cost (TVC):**
  \[
  TVC = 791 \times 26.00 = 20566.00
  \]

- **Total Revenue (TR):**
  \[
  TR = 791 \times 37.00 = 29267.00
  \]

#### **Row 2:**
- **Given:**
  - $ FC = 500.00 $
  - $ VC = 50.00 $
  - $ S = 125000.00 $
  
- **Break-even Volume (x):**
  \[
  x = \frac{500.00}{125000.00 - 50.00} = \frac{500.00}{124950.00} \approx 0.004
  \]
  Rounded up to the nearest integer: $ x = 1 $

- **Total Variable Cost (TVC):**
  \[
  TVC = 1 \times 50.00 = 50.00
  \]

- **Total Revenue (TR):**
  \[
  TR = 1 \times 125000.00 = 125000.00
  \]

#### **Row 3:**
- **Given:**
  - $ FC = 720.00 $
  - $ VC = 74.00 $
  - $ S = 22.00 $
  
- **Break-even Volume (x):**
  \[
  x = \frac{720.00}{22.00 - 74.00}
  \]
  Since the selling price is less than the variable cost, it is impossible to reach break-even, hence $ x $ is undefined (infinite loss).

- **Total Variable Cost (TVC) and Total Revenue (TR) are not applicable (N/A).**

#### **Row 4:**
- **Given:**
  - $ FC = 0.00 $
  - $ VC = 31.00 $
  - $ S = 54.00 $
  
- **Break-even Volume (x):**
  \[
  x = \frac{0.00}{54.00 - 31.00} = 0
  \]

- **Total Variable Cost (TVC):**
  \[
  TVC = 0 \times 31.00 = 0.00
  \]

- **Total Revenue (TR):**
  \[
  TR = 0 \times 54.00 = 0.00
  \]

### **Final Table:**

| Fixed Cost (FC) | Variable Cost (VC) | Selling Price (S) | Break-even Volume (x) | Total Variable Cost (TVC) | Total Revenue (TR) |
|-----------------|--------------------|-------------------|-----------------------|---------------------------|--------------------|
| $8,700.00       | $26.00             | $37.00            | 791                   | $20,566.00                | $29,267.00         |
| $500.00         | $50.00             | $125,000.00       | 1                     | $50.00                    | $125,000.00        |
| $720.00         | $74.00             | $22.00            | -                     | -                         | -                  |
| $0.00           | $31.00             | $54.00            | 0                     | $0.00                     | $0.00              |

Do you want further details or have any questions? 

Here are some related questions:

1. How does the break-even point change if fixed costs increase?
2. What happens to the break-even point if the selling price is reduced?
3. Can you explain why a product with a selling price lower than its variable cost cannot break even?
4. What other strategies can a business employ to reduce its break-even point?
5. How is total revenue calculated, and why is it important?
6. What impact do fixed and variable costs have on overall profitability?
7. Can you explore a scenario where reducing the variable cost affects the break-even point?
8. What does the break-even analysis tell us about the financial health of a company?

**Tip:** Always consider both fixed and variable costs when pricing a product to ensure profitability.

Learn how to calculate break-even analysis with fixed costs, variable costs, and selling price. Solve for break-even volume, total variable cost, and total revenue with detailed step-by-step solutions.

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