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Hevesy Inc. produces and sells a single product. The selling price of the product is $200.00 per unit and its variable cost is $80.00 per unit. The fixed expense is $300,000 per month. The break-even in monthly unit salesis closest to: a. 2,500b. 1,500c. 3,750d. 2,583

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kaancceylan

Answer:

The answer is A.

Explanation:

The formula for calculating the break-even point is

[tex]\frac{Fixed Costs}{Price Per Unit - Variable Cost Per Unit}[/tex]

If we use this formula and the given numbers in the example, we can say that the break-even in monthly unit sales is = [tex]\frac{300.000\\}{200.000-80.000}[/tex] which gives the result as $2.500.

I hope this answer helps.

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