4. If a product can be sold for $850 per unit, the variable cost per unit...

4. If a product can be sold for $850 per unit, the variable cost per unit is $380 and the fixed costs are $2,350,000, how many units must be produced and sold to achieve the breakeven? Show your calculations. (1 point)

Expert Solution

Contribution margin per unit = Selling price per unit - Variable cost per unit

= $850 - $380

= $470

Break-even sales (in units) = Fixed cost / Contribution margin per unit

= $2,350,000 / $470

= 5,000 units.

Thus, 5,000 units must be produced and sold to achieve the breakeven.

jeff jeffy answered 2 years ago

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