Answer :
Answer:
a.cannot be determined from the data given
Explanation:
As we already know that
The break even point is the point at which the firm has no profit or no loss i.e means neither the firm is earning profit nor the firm suffered from any losses
In mathematically,
Break even point is
= No loss = profit
Now in the given case, since the budgeted salary increases to factory supervisors i.e 9% so the next year break even point cannot be determined as no fixed cost is given, no selling price or sales revenue and no variable cost per unit or variable cost is given so that the contribution margin per unit or contribution margin ratio could arrive
As
Break even point in units is
= Fixed cost ÷ Contribution margin per unit
where,
Contribution margin per unit = Selling price per unit - variable cost per unit
And, the break even point in dollars is
= Fixed cost ÷ contribution margin ratio
where,
Contribution margin ratio is
= (Contribution margin per unit or contribution margin) ÷ (Sales or selling price per unit) × 100