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2. Cash Break Even:
SIPW Company sell windows. Windows are sold for $ 25/- each.
Variable cost is $ 15/- per door and total Fixed Operating
Costs are $ 50,000 /- which includes depreciation in the
amount of $ 2,000/-. How many units of windows the company
has to sell for Cash Break Even?
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Answer Posted / dilip
For BEP cash = fixed cost/ contribution.
Contribution=selling cost - variable cost.
Fixed cost for cash transaction=50000-2000=48000
BEP= 48000/ 25-15= 48000/10= 4800.
BEP = 4800.
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