Question

Data concerning Bedwell Enterprises Corporation's single product appear below: Selling price per unit $ 230.00 Variable expenses per unit $ 98.50 Fixed expense per month $ 451,190 The unit sales to attain the company's monthly target profit of $33,000 is closest to: (Do not round intermediate calculations.)

Answer 1

Break-even point in units= 3,682 units

Step-by-step explanation:

Giving the following information:

Selling price per unit $ 230

Variable expenses per unit $ 98.50

Fixed expense per month $ 451,190

Monthly target profit of $33,000

To calculate the number of units to be sold, we need to use the following formula:

Break-even point in units= (fixed costs + desired profit) / contribution margin per unit

Break-even point in units= (451,190 + 33,000) / (230 - 98.5)

Break-even point in units= 3,682 units