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If the unit sales price is $12, variable costs are $6 per unit, and fixed costs are $36,000, what sales volume (in dollars) is necessary to break-even?
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If the unit sales price is $12, variable costs are $6 per unit, and fixed costs are $36,000, what sales volume (in dollars) is necessary to break-even?

User Sherwood Wang
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1 Answer

3 votes

Answer:

72000

Step-by-step explanation:

Break even formula:

Break even in units=Fixed cost/Contribution margin per unit

= $ 36,000 / $ 6

= 6,000 Units

[Contribution margin=Sales price-Variable cost=12-6]

Break Even in Dollars = Break Even in Units * Selling Price Per Unit

= 6,000 Units * $ 12 Per Unit = $ 72,000

User Aligf
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