Question

True Bounce basketballs are manufactured by General Sports. It has total fixed costs of $3,110,400.00 for producing basketballs. The variable cost per basketball is $16.47. The selling price per basketball is $23.95. What is the break-even point in number of basketballs?

Answer 1

In order to calculate your company's breakeven point, use the following formula:

Fixed Costs ÷ (Price - Variable Costs) = Breakeven Point in Units

In other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note that in this formula, fixed costs are stated as a total of all overhead for the firm, whereas Price and Variable Costs are stated as per unit costs —​​ the price for each product unit sold

So

Breakeven Point in Units

3,110,400÷(23.95−16.47)=415,828.9

Round your answer to get 415829 units

Explanation:

Answer 2

In order to calculate your company's breakeven point, use the following formula:

Fixed Costs ÷ (Price - Variable Costs) = Breakeven Point in Units

In other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note that in this formula, fixed costs are stated as a total of all overhead for the firm, whereas Price and Variable Costs are stated as per unit costs —​​ the price for each product unit sold
So
Breakeven Point in Units

3,110,400÷(23.95−16.47)=415,828.9
Round your answer to get 415829 units