Answer:
Break-even point in units= 12,900
Explanation:
Giving the following information:
Total fixed cost (per period) $ 851,400
Variable cost per unit $ 120.00
Sales price per unit $ 186.00
To calculate the break-even point, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 851,400 / (186 - 120)
Break-even point in units= 12,900
Answer: 12900
Explanation:
From the information given, we'll first calculate the contribution per unit which will be:
= Selling price per unit - variable cost per unit
= $186 - $120
= $ 66
Then, the break even sales in units will be: = Fixed cost/Contribution per unit
= 851,400 / 66
= 12,900
Therefore, the breakeven is 12900
