Question

Selling price per unit = £0.63

Fixed Costs = £140 Variable

Cost per unit = £0.25

How many products do we need to sell to break even? I

Answer 1

368 units

Step-by-step explanation:

The Break-even point is calculated by dividing fixed cost by the contribution margin per unit.

Fixed cost = £140

Contribution margin per unit = Selling price per unit - variable cost per unit

Selling price = £0.63 : Variable cost : £0.25

Contribution margin per units =£0.63 - £0.25

=£0.38

Break-even point = £140 / £0.38

=368.42

=368 units