Question

If fixed costs are $1,372,000, the unit selling price is $223, and the unit variable costs...

If fixed costs are $1,372,000, the unit selling price is $223, and the unit variable costs are $107, what is the break-even sales (units) if fixed costs are increased by $47,900?

a.18,361 units

b.14,689 units

c.12,241 units

d.9,792 units

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Answer #1
Answer
The Correct option is C : 12,241
Explanation
Selling Price per unit 223
Variable Cost -107
Contribution per unit 116
Fixed Cost 1372000+47900
Fixed Cost 1419900
Break Even Point = Fixed Costs/ Contribution per unit
1419900/116
Break Even Point =                       12,241
The correct answer is C 12,241 Units

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