Question

5. What is the break-even point for selling a new style of tennis shoes if fixed costs are $100,000, the variable costs are $10 per unit, the target return is 20 percent, and the contribution per unit is $25

Answer 1

Break-even point= $4000

Step-by-step explanation:

Fixed cost = $100,000

Contribution Margin = $ 25

Break even point = Fixed cost / contribution margin

= $100,000/ $ 25 = $4000