If the fixed costs are $25,000 and the variable cost/unit is $35 and the selling price is $375 units, what is the break-even?
A)67.50
B)69.25
C)71.75
D)73.50

Question

Quizplus · Accepted Answer

To calculate the break-even point in units, you use the formula: Break-even point in units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Plugging in the given numbers: $25,000 / ($375 - $35) = $25,000 / $340 = 73.53 units. Since we're dealing with units, we round to the nearest whole unit, making the answer 73.50 units.

If the Fixed Costs Are $25,000 and the Variable Cost/unit