Question

During FY 2019, Dorchester Company plans to sell Widgets for $14 a unit. Current variable costs...

During FY 2019, Dorchester Company plans to sell Widgets for $14 a unit. Current variable costs are $6 a unit and fixed costs are expected to total of $109,000. Use this information to determine the number of units of Widgets for Dorchester to breakeven.  (Round to the nearest whole number)

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Answer #1

Answer:13625 Widgets

Breakeven in Units = Fixed cost / (Selling price - variable cost )

                               = 109000 / ( 14 - 6 )

                               = 13625 Widgets

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