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In: Accounting

If fixed costs are $247,000, the unit selling price is $116, and the unit variable costs...

If fixed costs are $247,000, the unit selling price is $116, and the unit variable costs are $73, what are the break-even sales in units (rounded to a whole number)?

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Expert Solution

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Break-even point in units =                 5,744 units
Workings:
Unit selling Price = $                 116
Less: Unit variable cost = $                   73
Unit contribution margin = $                   43
Fixed cost = $       2,47,000
Break-even point in units = Fixed costs / Unit contribution margin
= $247000 / $43
=                 5,744 units

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