This weeks assignment is broken down into three sections – a breakeven calculation, a multiple choice question and an essay. Your essay should be at least two pages in length, 12 point font, double spaced.
Please complete question 1-6 below.Â Please show all of your work to receive credit.
Brandon’s home healthÂ care agency is considering a new product with aÂ fixed cost of $2,000,Â a chargeÂ per unit of $150, and aÂ variable cost of $100.
1. Calculate the break-evenÂ point in quantity.
2. Calculate the contribution margin in dollars.
3. Calculate the contribution margin as a percent.
4. Calculate the breakeven point in dollars.
5. TheÂ breakevenÂ point occurs where:
total Â variable costs and total revenue intersect
total Â revenueÂ outpacesÂ total avoidable fixed costs
total Â costs and total revenue intersect
total Â fixed costs and total revenue intersect
total Â profit margin and total costs intersect
6. DefineÂ cost behavior. Identify and explainÂ the five general types of cost behavior.
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