Question

How many units should A B C corporation should sell to breakeven? Selling price =300 Variable cost =150 per unit Total fixed cost =80,000

Answer 1

To calculate the breakeven point for A B C corporation, we need to determine the number of units that need to be sold in order to cover all the fixed and variable costs. The breakeven point occurs when the total revenue equals the total cost.

Step-by-step explanation:

To calculate the breakeven point for A B C corporation, we need to determine the number of units that need to be sold in order to cover all the fixed and variable costs. The breakeven point occurs when the total revenue equals the total cost. Here are the steps to calculate the breakeven point:
Calculate the contribution margin per unit by subtracting the variable cost per unit from the selling price per unit: $300 - $150 = $150.

Determine the breakeven point by dividing the total fixed cost by the contribution margin per unit: $80,000 ÷ $150 = 533.33 units.

Therefore, A B C corporation should sell approximately 534 units to breakeven.