Question

Freese Inc. sells a product for 650 per unit. The variable cost is 455 per unit, while fixed costs are 4,290,000. Determine (a) the break-even point in sales units and (b) the break-even point if the selling price were increased to $655 per unit. a. Break-even point in sales units fill in the blank 1 units b. Break-even point if the selling price were increased to $655 per unit fill in the blank 2 units

Answer 1

22,000

21,450

Step-by-step explanation:

Breakeven quantity are the number of units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

4,290,000 / (650 - 455) = 22,000

4,290,000 / (655 - 455) = 21450