Question

A product selling in France has a price to the channel of EUR 10.00, fixed costs of EUR 33 million, and variable costs of EUR 4.50. How many units does the company have to sell to break even?

a. 3 mill.
b. 6 mill.
c. 10 mill.
d. 33 mill.

Answer 1

the break even point in units is 6 million

Step-by-step explanation:

The computation of the break even point in units is shown below:

= Fixed cost ÷ (Selling price = variable cost)

= Eur 33 million ÷ (Eur 10 - Eur 4.50)

= Eur 33 million ÷ Eur 5.5

= 6 million

Hence, the break even point in units is 6 million

Therefore the correct option is b.

We simply applied the above formula so that the correct value could come

And, the same is to be considered