Question

Assume a company sells a given product for $90 per unit. How many units must be sold to break even if variable selling costs are $2 per unit, variable production costs are $31 per unit, and total fixed costs are $1,799,946

Answer 1

Break-even point in units= 31,227 units

Step-by-step explanation:

Giving the following information:

Selling price= $90

Unitary variable cost= $33

Total fixed costs= $1,799,946

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 1,779,946 / (90 - 33)

Break-even point in units= 31,227 units