Question

Selling price per unit $ 100 Variable expenses per unit $ 40 Fixed expenses per month $ 60,000 The breakeven point in terms of volume of units per month i

Answer 1

1,000 units

Explanation:

According to the given situation, the computation of break even point is shown below:-

Break even point in units is

= Fixed cost ÷ (Selling price per unit - contribution margin per unit)

= $60,000 ÷ ($100 - $40)

= $60,000 ÷ $60

= 1,000 units

Therefore for computing the break even point in units we simply solved the above equation