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Sheryls's business sells a single product. The following information was gathered from Sheryls's records: Price $97.00 per unit Variable costs are 67% of sales price The company's fixed costs are $400,
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Sheryls's business sells a single product. The following information was gathered from Sheryls's records: Price $97.00 per unit Variable costs are 67% of sales price The company's fixed costs are $400,000 annually Current sales total is 16,000 units Target profit before tax $33,000 Budgeted sales total is 15,000 units How many units does Sheryls's business need to sell to break even

User Nargis
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3 votes

Answer:

12,497 units

Step-by-step explanation:

Break even unit = Fixed Cost ÷ Contribution per unit

= $400,000 ÷ $97.00 x 33%

= 12,497 units

Sheryls's business need to sell 12,497 units to break even

User Gizgok
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