Answer:
Break-even point (in units)= 3,250 units
Explanation:
Giving the following information:
Selling price= $33 per unit.
Variable costs are currently 40% of sales revenue.
Fixed expenses are $68,250 per year.
First, we need to calculate the unitary variable cost:
Unitary variable cost= 30*0.4= $12
Break-even point= fixed costs/ contribution margin
Break-even point= 68,250/ (33 - 12)= 3,250 units