Question

Your break-even point is 3, 000 units . You make $5 on each unit; that is, your price minus variable cost is $5. What ar your fixed costs? Use the formula: Break-even Point = Fixed Costs(Price Variable Cost)

Answer 1

$15,000

Step-by-step explanation:

Break -even point = Fixed cost/ price variable cost

Usually, break even = Fixed cost/ contribution margin per unit.

Contributions margin per unit = selling price - variable costs

in the case, $5 = contribution margin per unit

3000= Fixed costs/ $5

Fixed cost = 3000 x $5

Fixed Costs = $15,000