Question

It has a fixed cost of $62,150. If the selling price per unit is $9.50 and the variable cost per unit is $6.25, the breakeven point is

Answer 1

Break-even point = $19,123 (Approx)

Explanation:

Given:

Fixed cost = $62,150

Selling price = $9.50

Variable cost = $6.25

Find:

Break-even point

Computation:

Break-even point = Fixed cost / [Selling price - Variable cost]

Break-even point = 62150/[9.50-6.25]

Break-even point = 62150/3.25

Break-even point = $19,123 (Approx)