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Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 53,000 Units Unit selling price $14.65 Unit variable cost $7.80 Fixed costs $189,
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17 votes
17 votes
Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales 53,000

Units Unit selling price $14.65
Unit variable cost $7.80
Fixed costs $189,000
12,901
27,591
8,419
46,545
24,231

User Nathan Binkert
by
3.0k points

1 Answer

11 votes
11 votes

Answer:

27,591 units

Step-by-step explanation:

The computation of the break even point in units is shown below:

Contribution margin is

= (Sales - Variable costs)

= ($14.65 - $7.80)

=$6.85

Now

breakeven point in units is

= fixed cost ÷ Contribution margin

= ($189,000 ÷ $6.85)

= 27,591 units

User Mesut Akcan
by
3.2k points
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