Question

se the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 60,000 Units Unit selling price $ 15.00 Unit variable cost $ 8.50 Fixed costs $ 196,000

Answer 1

30,154 units

Step-by-step explanation:

In this question we use the formula of break-even point in unit sales which is shown below:

= (Fixed expenses) ÷ (Contribution margin per unit)

where,

Contribution margin per unit = Selling price per unit - Variable expense per unit

= $15 - $8.5

= $6.5

And, fixed cost is $196,000

Now put these values to the above formula

So, the value would equal to

= ($196,000) ÷ ($6.5)

= 30,154 units