Question

Reynold's Grocery has fixed costs of $327,000, the unit selling price is $26, and the unit variable costs are $20. What are the break-even sales in units (rounded to a whole number) if the variable costs are decreased by $5? a.16,350 units b.29,727 units c.54,500 units d.21,800 units

Answer 1

b.29,727 units

Step-by-step explanation:

Break even Point = Fixed Costs ÷ Contribution per unit

therefore

Break even Point = $327,000 ÷ $11

= 29,727 units