text: Explore BrainMass
  Share
  
  # BEP and Variable Cost
  
  This content was STOLEN from BrainMass.com - View the original, and get the solution, here!
  
  Please show your steps so I know where I am making my mistakes. See attached file.
  
  #### Solution Preview
  
  See tea attached file.
  
  1. Sporto Enterprises is considering the manufacture of a new type of golf ball. Each golf ball would sell for \$3.75 and would require \$1.75 in variable costs. In addition, annual fixed costs associated with the project would total \$64,000.
  Calculate: (a) the breakeven point in units
  Selling price (S) \$ 3.75
  Variable cost (V) \$ 1.75
  Fixed cost (FC) \$ 64,000
  BEP = FC/(S-V) 32,000 units
  
  (b) the breakeven point in dollars,
  Selling price (S) \$ 3.75
  Variable cost (V) \$ 1.75
  Fixed cost (FC) \$ 64,000
  BEP = FC/(1-V/S) \$ 120,000
  
  (c) the operating income or loss at a sales volume of \$112,500
  Profit = Sales Volume*(1-V/S) - FC \$ -4,000 (negative sign indicates loss)
  Since sales volume is less ...
  
  #### Solution Summary
  
  The solution solves three problems on break even analysis and variable cost.
  
  \$2.19
explanation: The document contains a math question and a detailed answer to the question. The question is about calculating the breakeven point in units, breakeven point in dollars, and the operating income or loss at a specific sales volume for a golf ball manufacturing project.
distilabel_metadata.content: Evaluate the user given text extract and determine if it contains a math question and optionally and answer to this question.
  
  Output rules:
  
  1. Briefly describe the document and mention if it contains a question or a question and answer.
  2. Finalize the output with: Label: no-question,question,question-and-answer,multiple-question,multiple-question-and-answer
distilabel_metadata.role: system
distilabel_metadata.content: Explore BrainMass
  Share
  
  # BEP and Variable Cost
  
  This content was STOLEN from BrainMass.com - View the original, and get the solution, here!
  
  Please show your steps so I know where I am making my mistakes. See attached file.
  
  #### Solution Preview
  
  See tea attached file.
  
  1. Sporto Enterprises is considering the manufacture of a new type of golf ball. Each golf ball would sell for \$3.75 and would require \$1.75 in variable costs. In addition, annual fixed costs associated with the project would total \$64,000.
  Calculate: (a) the breakeven point in units
  Selling price (S) \$ 3.75
  Variable cost (V) \$ 1.75
  Fixed cost (FC) \$ 64,000
  BEP = FC/(S-V) 32,000 units
  
  (b) the breakeven point in dollars,
  Selling price (S) \$ 3.75
  Variable cost (V) \$ 1.75
  Fixed cost (FC) \$ 64,000
  BEP = FC/(1-V/S) \$ 120,000
  
  (c) the operating income or loss at a sales volume of \$112,500
  Profit = Sales Volume*(1-V/S) - FC \$ -4,000 (negative sign indicates loss)
  Since sales volume is less ...
  
  #### Solution Summary
  
  The solution solves three problems on break even analysis and variable cost.
  
  \$2.19
distilabel_metadata.role: user
distilabel_metadata.raw_output_q_a_detector_0: The document contains a math question and a detailed answer to the question. The question is about calculating the breakeven point in units, breakeven point in dollars, and the operating income or loss at a specific sales volume for a golf ball manufacturing project.
  
  Label: question-and-answer