Question

A company's product sells at $12.10 per unit and has a $5.15 per unit variable cost....

A company's product sells at $12.10 per unit and has a $5.15 per unit variable cost. The company's total fixed costs are $97,500. The break-even point in units is:

Homework Answers

Answer #1

Answer---------14029 units or 14028.78 units depending on round off

Working

A Sale price $              12.10
B variable expense $                5.15
C=A-B Contribution margin $                6.95
D Fixed expenses plus desired profit $     97,500.00
E=D/C Break Even point in Unit Sale [Answer 1] 14028.78
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