If TechCor has fixed costs of $60,000, variable costs of $1.20/unit, a sales price/unit of $7, and depreciation expense of $25,000, what is their cash breakeven in units?
A)6,034 units
B)11,458 units
C)12,375 units
D)45,833 units

Question

Quizplus · Accepted Answer

Cash breakeven in units = Fixed costs / (Sales price/unit - Variable costs/unit)= 60,000 / (7 - 1.20)= 60,000 / 5.80= 10,344.83 units

If TechCor Has Fixed Costs of $60,000, Variable Costs of $1.20/unit