Break even calculation

BenVickers
BenVickers Registered Posts: 2 New contributor 🐸
in Management Accounting Techniques
I have recently taken my MATS exam. i was asked to calculate break even in units. I am comfortable with the calculation however in all of the mocks I have done it has asked me to calculate to the nearest unit. In the exam it did not ask me to calculate to the nearest unit. the answer came to 176.1 should the answer be rounded up to 177 as 176 would not break even? TIA

Comments

  • anony123
    anony123 Registered Posts: 531 Epic contributor 🐘
    Yes, you need to round up. Otherwise, the break even will not happen. How did you find the Excel?
  • BenVickers
    BenVickers Registered Posts: 2 New contributor 🐸
    Excel was OK, it worked at lease which was a slight worry going in. task 6 wasn't hugely clear but think i did OK. Thank you for your response.
  • anony123
    anony123 Registered Posts: 531 Epic contributor 🐘
    That’s no problem. I did mine last to last year and my excel didn’t work originally and I got 65, which excluded task 5 and 6. I had to retake it and got 81. The excel was very difficult for me. I assume you rounded up for the breakeven point. I think I remember it as fixed cost/ contribution per unit.

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