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Borris Company sold 5,820 units for $43 each. Variable costs were $29 per unit and total...

Borris Company sold 5,820 units for $43 each. Variable costs were $29 per unit and total fixed expenses were $16,980.

What is the breakeven in terms of units for Borris?

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Answer #1

Total fixed cost (F) should be divided by contribution per unit (C) in order to get BE units.

C = Selling price – VC per unit

     = 43 – 29

     = 14

BE units = F / C

               = 16,980 / 14

               = 1,212.85

               = 1,213 rounded to whole number

Answer: 1,213 units

Note: Units sold of 5,820 is not relevant here

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