Question

A product selling in France has a price to the channel of EUR 10.00, fixed costs of EUR 33 million, and variable costs of EUR 4.50. How many units does the company have to sell to break even

Answer 1

Break-even point in units= 6,000,000

Step-by-step explanation:

Giving the following information:

Selling price= $10

Unitary variable cost= $4.5

Fixed costs= 33,000,000

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= 33,000,000 / (10 - 4.5)

Break-even point in units= 6,000,000