Question

Constance corporation has a single product. its selling price is $80 and the variable costs are $30. the company’s fixed expenses are $5,000. what is the company’s break-even point in unit sales?

Answer 1

The break-even point in unit sales for Constance corporation is 100 units.

Step-by-step explanation:

To calculate the break-even point in unit sales, we need to determine the number of units the company needs to sell in order to cover its fixed expenses. The formula to calculate the break-even point is:

Break-even point (in units) = Fixed expenses / (Selling price per unit - Variable cost per unit)

Plugging the values from the question, we get: Break-even point (in units) = $5,000 / ($80 - $30) = 100 units.