The following information relates to Wither Ltd £ Sales (250,000 units) 750,000 Manufacturing Costs: Variable 300,000...

The following information relates to Wither Ltd

	£
Sales (250,000 units)	750,000
Manufacturing Costs:
Variable	300,000
Fixed	80,000
Selling & Administrative Costs:
Variable	75,000
Fixed	40,000

What is the break even point in units for Wither Ltd?

Expert Solution

Sale	7,50,000
Less Variable cost
Manufacturing Costs	3,00,000
Selling & Administrative Costs	75,000

Contribution	3,75,000
Less Fixed cost
Manufacturing Costs	80,000
Selling & Administrative Costs	40,000

Operating profit	2,55,000


Contribution per unit	1.5	375000/250000

Break-even point in units = Total fixed expenses/Contribution margin per unit


Break even point in units =	80,000	(80000+40000)/1.5

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ekkarill92 answered 2 years ago

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