If the total fixed costs are $850,000, the selling price is $110 and the variable cost per unit is $25, what is the breakeven volume?
A) 17,000 units
B) 10,000 units
C) 7,000 units
D) 1,000 units
E) need more information to calculate

Question

Quizplus · Accepted Answer

The breakeven volume is calculated by dividing the total fixed costs by the contribution margin per unit (selling price - variable cost per unit). Here, it is $850,000 / ($110 - $25) = 10,000 units.

If the Total Fixed Costs Are $850,000, the Selling Price