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Reynold's Grocery has fixed costs of $327,000, the unit selling price is $26, and the unit variable costs are $20. What are the break-even sales in units (rounded to a whole number) if the variable costs
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Reynold's Grocery has fixed costs of $327,000, the unit selling price is $26, and the unit variable costs are $20. What are the break-even sales in units (rounded to a whole number) if the variable costs are decreased by $5? a.16,350 units b.29,727 units c.54,500 units d.21,800 units

User Muhamad Yulianto
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1 Answer

3 votes

Answer:

b.29,727 units

Step-by-step explanation:

Break even Point = Fixed Costs ÷ Contribution per unit

therefore

Break even Point = $327,000 ÷ $11

= 29,727 units

User Blispr
by
5.3k points
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