Question

Mustang Corp. has a selling price of $24, variable costs of $13 per unit, and fixed costs of $55,000. How many units must be sold to break-even?a. 4231 b. 2292 c. 5,000 d. 10,000

Answer 1

5,000

Step-by-step explanation:

Mustang corporation has a selling price of $24

Variable cost is $13

Fixed cost is $55,000

Therefore the number of units that must be sold to break even can be calculated as follows

= $24-$13

= $11

= $55,000/$11

= 5,000

Hence 5,000 units must be sold to break even