If fixed costs are $180,000, variable costs are $38 per unit, and the product sells for $70, the breakeven point in sales dollars is $393,750.

Question

Quizplus · Accepted Answer

The breakeven point in sales dollars can be calculated using the formula:

Breakeven point in dollars = Fixed costs / (1 - (Variable costs / Sales price))

Substituting the given values, we get:

Breakeven point in dollars = $180,000 / (1 - ($38 / $70))
Breakeven point in dollars = $393,750

Therefore, the statement is true.

If Fixed Costs Are $180,000, Variable Costs Are $38 Per