Question

Store 24 has figured it's estimated sales price for money orders as 69 cents per unit. The contribution margin for one money order is 41.5 cents. The fixed cost per store is $25 per month. What number of money orders need to be sold per day in order to breakeven per store

Answer 1

Break-even point in units= 60.24= 60 units

Step-by-step explanation:

Giving the following information:

Unitary contribution margin= $0.415

Fixed costs= $25

To calculate the break-even point in units, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 25 / 0.415

Break-even point in units= 60.24= 60 units