Suppose a firm produces and sells Apply watchbands with these values: total fixed costs of $248,500;...

Suppose a firm produces and sells Apply watchbands with these values:
total fixed costs of $248,500; variable cost per unit = $18; and selling price per unit = $49. What is the firm's break-even quantity?

Expert Solution

Break even quantity = Fixed costs/ Contribution per unit

Contribution per unit = Selling price per unit - Variable cost per unit = $49 - $18 = $31

Break even quantity = $248,500/ $31 = 8,016 units

ekkarill92 answered 3 years ago

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