Question

In: Accounting

Consider the following information when answering the question below. Fixed expenses $20,000 Variable cost per unit...

Consider the following information when answering the question below.

Fixed expenses

$20,000

Variable cost per unit

$25

Selling price per unit

$30

The break even point in units is:

Select one:

a. 20,000 units

b. 800 units

c. 667 units

d. 4,000 units

e. 2,500 units

Solutions

Expert Solution

Solution :

Break Even point (In Units) : Fixed Cost / Selling price per unit - Variable cost per unit

: $20,000 / ($30 - $25)

: 4000 Units

The correct option is d. 4000 units

ekkarill92 answered 2 years ago
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