a company's product sells at $12.34 per unit and has a $5.51 per unit variable cost. the company's total fixed costs are $96,300. the break-even point in units is:

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24-10-2022
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a company's product sells at $12.34 per unit and has a $5.51 per unit variable cost. the company's total fixed costs are $96,300. the break-even point in units is:

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GopalBarman GopalBarman · Answer 1 · 2022-11-05T11:42:52+01:00

Break-even point in units= 14,088 units

Giving the following information about the breakeven point

A company`s product sells at $12.30 per unit and has a $5.45 per unit variable cost. The company's total fixed costs are $96,500.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 96,500/ (12.3 - 5.45)

Break-even point in units= 14,088 units

The breakeven factor is the factor at which the overall price line intersects the overall sales line . It is the range of devices a organization have to promote to generate a 0 profit.

Sales under the breakeven factor imply a loss, while income above the breakeven factor imply a profit.

To know more about breakeven point:

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