In: Accounting
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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| 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 |