Respuesta :
If fixed costs are $245,000, the unit selling price is $117, and the unit variable costs are $73, the break-even sales (units) is: 5.697.67 units.
What is a fixed cost?
- Fixed costs, sometimes referred to as indirect costs or overhead costs in accounting and economics, are costs incurred by a corporation that are independent of the volume of goods or services the company produces. They frequently occur again and again, like monthly rent or interest payments. These expenses are often capital expenses as well.
- Costs that are fixed are those that don't change based on volume. Most fixed costs are expenses that depend more on time than on how much your company produces or sells. Rent and leasing charges, salary, energy prices, insurance, and loan repayments are a few examples of fixed costs.
- Rent and mortgage payments are two examples of fixed expenses. Auto loans. Additional loan payments
- Total production costs — (Variable cost per unit multiplied by the number of units produced) = Fixed costs.
Explanation:
Contribution margin per unit = Unit Selling Price - Unit Variable Cost
= $116 - $78
= $43 per unit
Break even point = Fixed Costs / Contribution margin per unit
= $245,000 / $38
= 5.697.67 units
Hence, the statement is not correct because break even unit sales is not equal to 5.697.67 units.
If fixed costs are $245,000, the unit selling price is $117, and the unit variable costs are $73, the break-even sales (units) is: 5.697.67 units.
To learn more about fixed costs, refer to:
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