Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $19.00...

Determine the unit break-even point, assuming fixed costs are $30,000 per period, variable costs are $19.00 per unit, and the sales price is $25.00 per unit.

Expert Solution


CALCULATION OF CONTRIBUTION MARGIN

PARTICULARS	AMOUNT
Selling Price Per Unit=	$ 25
Less: Variable Cost Per Unit	$ 19
Contribution Margin Per Unit	$ 6



Answer = 1

CALCULATION OF THE BREAK EVEN POINT IN UNITS

Break Even point = Fixed Cost / Contribution Margin Per Unit
Break Even point =
Fixed Cost =	$ 30,000
Divide By	"/" By
Contribution Margin Per Unit =	$ 6
Break Even point =	5000	Units

Answer = Unit Break even point = 5000 Units

ekkarill92 answered 3 years ago

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