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Use the following information to determine the break-even point in units (rounded to the nearest whole unit): Unit sales41,000 Units Unit selling price$15.45 Unit variable cost$9.40 Fixed costs$177,000

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Answer:

29,257 units

Explanation:

The break-even point is reached when the revenue from sales equals total variable plus fixed costs.

The break-even point, in units is:

[tex]x*\$15.45 = \$177,000+(x*\$9.40)\\x=\frac{\$177,000}{\$15.45-\$9.40} \\x=29,256.20[/tex]

Rounding up to the nearest whole unit, the break-even point is 29,257 units.

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