Calculating Fixed Costs, Variable Costs, and Breakeven

Write your answers in the space provided for each of the questions below:

Price x Volume = Fixed Cost + (Variable Cost per Unit x Volume)

1. Find the breakeven price if:

   • Volume = 1000

   • Variable Cost per Unit=$5

   • Total Fixed Cost=$2500

1. Find the breakeven volume if:

   • Price = $25

   • (Variable Cost per Unit x volume)=$300

   • Total Fixed Cost =$5000

1. Find the breakeven total fixed cost if:

   • Price = $30

   • Variable Cost per Unit=$10

   • Volume =10,000

1. Find the breakeven Variable Cost per Unit if:

   • Price = $50

   • Fixed Cost=$25,000

   • Volume =15,000

1. To help you better understand fixed and variable costs, briefly describe what happens to each of the following as volume increases: (Provide a generalization based on the concept rather than a specific number.)

1. Total Fixed Cost?

2. Total Variable Cost?

3. Fixed Costs per Unit?

4. Variable Cost per Unit?

Break-Even Volume=Fixed Costs / Contribution Margin per Unit

1. What is the Contribution Margin per Unit if:

• Fixed Costs = $2500

• Revenue per visit = $150

• Variable Cost per visit = $75

1. What is the Break-Even Volume from the data above? Should the company provide the services if no other costs are added? Why or why not?