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A company's product sells at $12.30 per unit and has a $5.45 per unit variable cost. The company's total fixed costs are $96,500. The break-even point in units is:

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Answer:

Break-even point in units= 14,088 units

Explanation:

Giving the following information:

A company's product sells at $12.30 per unit and has a $5.45 per unit variable cost. The company's total fixed costs are $96,500.

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 96,500/ (12.3 - 5.45)

Break-even point in units= 14,088 units

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