Question

Use this formula to help solve the problem. break-even point = P+V*Q+F=S*Q

Assume that at one point a business sells cameras for a price of $20 each, which cost $10 to produce (variable costs). The business's fixed expenses for the period are $2,000. What is the break-even point?
A). 400 units
B).100 units
C). 300 units
D). 200 units
Entrepreneurship PLZ HELP

Answer 1

200 Units was correct on my test (Edge)

Step-by-step explanation:

Answer 2

D). 200 units

Step-by-step explanation:

As per contribution margin concepts, the break-even point is calculated using the formula.

Break-even point = fixed costs/Contribution margin per unit.

fixed cost is $2,000

Contribution margin per unit = sales price-variable costs

= $20- $10 = $10

Break-even point = $2000/10

=200 units