Question

Lights Manufacturing produces a single product that sells for

$ 150$150.

Variable costs per unit equal

$ 50$50.

The company expects total fixed costs to be

$ 80 comma 000$80,000

for the next month at the projected sales level of

1 comma 0001,000

units. What is the current breakeven point in terms of number of​ units?

Answer 1

Breakeven point in units = 800 units

Working

A	Sale Price per unit	$                 150.00
B	Variable Cost per Unit	$                   50.00
C=A - B	Unit Contribution	$                 100.00
D	Total Fixed cost	$           80,000.00
E=D/C	Breakeven point in units	800