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If the price per unit were doubled at the same time that the variable cost per unit was doubled, the break-even point would be:

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Answer:

halved

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

Assume fixed cost is initially 1000 units, price is 10, variable cost is 5

breakeven quantity = 1000 / (10 - 5) = 200

assume price per unit were doubled at the same time that the variable cost per unit was doubled

1000 / ( 20 - 10) = 100

breakeven point is halved

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