Breakeven Analysis | Accounting

Running head: ACCOUNTING
Accounting
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ACCOUNTING1
Table of Contents
Breakeven Analysis.........................................................................................................................2
Bibliography....................................................................................................................................6

ACCOUNTING2
Breakeven Analysis
The breakeven analysis for the company has been well done for the purpose of well
finding out the minimum number or units that the company needs to well sell for the purpose of
well covering the fixed costs of a company. The breakeven analysis for the Apple Incorporation
has been well carried down in two scenarios in which a single product was considered were
expenses incurred related to a single product has been accounted and relevant analysis has been
well accounted for analysis purpose. In each of the breakeven analysis calculated for the
company there were several assumptions and facts included. The two products upon which the
analysis has been specifically created is the Apple ipod in the first case. On the other hand, in the
second scenario three products which were well selected were Apple iphone 11, Apple iphone 11
Pro, Apple iphone 11 Max.
Single Product Analysis: The formula that has been well applied for calculating the Breakeven
Sales has been as follows:
Breakeven Units: Fixed Costs/(Selling Price-Variable Cost)
The fixed costs that the company would be incurring has been well classified whereby relevant
fixed costs that the company would be incurring has been drawn on a detailed basis and the same
has been well encountered. The selling price for the Ipod has been kept at $199 for the Ipod and
the breakeven units that it needs to well sell for covering its fixed costs has been around 4007
Units. The total fixed costs considered was around $68450. Other key analysis like variable
costs per unit and contribution margin were also shown in a detailed manner.