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A company sells a product which has a unit sales price of $6, unit variable cost of $2 and total fixed costs of $234000. The number of units the company must sell to break even is 936000 units. 117000 units. 39000 units. 58500 units.

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Kolawole845

Answer:

     = 58,500 units

Explanation:

The break-even sales in units is the number of units of a product to be sold in order  for the total cost to be equal to the total revenue. At the break-even point total contribution is exactly equal to total fixed cost, and therefore the business makes no profit or loss.

Break-even point = Total Fixed cost/ contribution per unit

Break-even point (units) = $234,000/(6-2)

                                       = 58,500 units

The number of units the company must sell to break even is 58,500 units

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